On the balance of probabilities if you own a flat in Ferryhill you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ferryhill can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 a wealth of experience dealing with Ferryhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander was the the leasehold proprietor of a conversion flat in Ferryhill on the market with a lease of a few days over sixty years outstanding. Alexander on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Mr and Mrs. M Cooper , who acquired a purpose-built apartment in Ferryhill in April 2008. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable premises in Ferryhill with a long lease were worth £198,800. The mid-range ground rent payable was £55 billed annually. The lease came to a finish in 2079. Considering the 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
Last Autumn we were called by Dr P Vincent , who was assigned a lease of a studio apartment in Ferryhill in January 2006. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Ferryhill with an extended lease were valued about £295,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2099. Given that there were 75 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.