The closer a domestic lease in Ferryhill nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Ferryhill will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you increased control over the value of your Ferryhill leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her leasehold flat in Ferryhill, Katie initiated the lease extension process as the eighty year deadline was quickly coming. The lease extension completed in January 2008. The landlord’s charges were negotiated to below five hundred GBP.
Last year we were contacted by Mr and Mrs. Y Cox , who bought a recently refurbished apartment in Ferryhill in May 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Ferryhill with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated on 7 February 2079. Considering the 54 years unexpired we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus expenses.
In 2010 we were called by Mrs Stephanie Bernard who, having moved into a first floor apartment in Ferryhill in February 2003. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Ferryhill with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was on 12 January 2099. Given that there were 74 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.