With a long leasehold property in Ferryhill, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Anyone in Ferryhill with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has below 80 years left, under the current Act the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Ferryhill with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| 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 obtain professional help 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 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.
Last year Lucas, started to get near to the eighty-year mark with the lease on his leasehold apartment in Ferryhill. In buying his flat 18 years ago, the lease term was of little concern. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Lucas arranged for a lease extension just under the wire in April. Lucas and the freeholder subsequently settled on the final figure of £5,500 . If he not met the deadline, the price would have escalated by at least £1,075.
Last August we were contacted by Dr Tommy Bell , who acquired a one bedroom apartment in Ferryhill in February 2007. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Ferryhill with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expired on 11 August 2086. Considering the 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including expenses.
In 2010 we were contacted by Dr Lily Peterson who, having completed a purpose-built flat in Ferryhill in September 2007. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Ferryhill with an extended lease were in the region of £171,800. The average ground rent payable was £55 invoiced quarterly. The lease expired in 2075. Taking into account 50 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.