Unfortunately that a Ferndown residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Ferndown property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Ferndown will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Ferndown with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Ferndown can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Ferndown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Andrew, came very near to the eighty-year mark with the lease on his garden flat in Ferndown. In buying his property two decades ago, the lease term was of little importance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Andrew was able to extend his lease just under the wire last March. Andrew and the freeholder via the management company subsequently agreed on an amount of £5,000 . If the lease had descended lower than eighty years, the amount would have gone up by a minimum £975.
Mr and Mrs. W Wilson was assigned a lease of a newly refurbished flat in Ferndown in March 2010. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative homes in Ferndown with a long lease were in the region of £275,000. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2093. Considering the 68 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2010 we were e-mailed by Dr Muhammad Bell who, having took over the lease of a one bedroom apartment in Ferndown in October 1995. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable homes in Ferndown with an extended lease were valued about £213,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease expiry date was in 2082. Given that there were 57 years outstanding we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus professional charges.