With a domestic leasehold property in Ferryhill, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years remaining. Residents in Ferryhill with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has under eighty years left, under the current legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you better 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 conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the freeholder of her two bedroom flat in Ferryhill, Isobel initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work was finalised in May 2014. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. D Martínez , who moved into a one bedroom apartment in Ferryhill in August 2005. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Ferryhill with a long lease were valued about £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out on 13 August 2094. Considering the 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Mr and Mrs. E Hall owned a one bedroom apartment in Ferryhill in October 1996. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in Ferryhill with an extended lease were valued about £208,600. The average ground rent payable was £60 billed annually. The lease finished in 2083. Given that there were 57 years as a residual term we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.