Ferryhill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Ferryhill tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ferryhill you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Ferryhill flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The lawyers that we work with procure Ferryhill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Finn, came precariously near to the 80-year threshold with the lease on his basement flat in Ferryhill. In buying his home 18 years ago, the lease term was of minimal concern. Luckily, he became aware that he needed to take action soon on a lease extension. Finn was able to extend his lease just under the wire last June. Finn and the freeholder via the management company in the end settled on the final figure of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £1,100.
Last Christmas we were e-mailed by Dr Thomas Rogers , who took over the lease of a garden flat in Ferryhill in October 1999. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar homes in Ferryhill with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 21 August 2077. Taking into account 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
Mrs Melissa Gray bought a studio flat in Ferryhill in September 2004. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Ferryhill with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expired in 2097. Having 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.