The market value of Ferndown leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than eighty years
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service gives you increased control over the value of your Ferndown leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Arthur, came precariously near to the 80-year threshold with the lease on his ground floor flat in Ferndown. Having bought his flat two decades ago, the lease term was of minimal relevance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Arthur arranged for a lease extension at the eleventh hour in September. Arthur and the landlord who owned the flat above eventually agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,100.
Last Spring we were e-mailed by Ms S Martinez , who owned a purpose-built flat in Ferndown in October 2002. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Ferndown with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease termination date was in 2097. Given that there were 72 years outstanding we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus expenses.
Last Spring we were approach by Mr and Mrs. A Taylor , who took over the lease of a purpose-built apartment in Ferndown in January 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative flats in Ferndown with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 invoiced annually. The lease end date was in 2086. Taking into account 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.