Ferryhill leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Ferryhill will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as 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; |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Ferryhill leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold proprietor of a 2 bedroom flat in Ferryhill being marketed with a lease of fraction over 61 years left. Ben on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Dr Gemma Campbell was assigned a lease of a garden apartment in Ferryhill in April 2001. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Ferryhill with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2102. Considering the 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Mrs C Fournier was assigned a lease of a basement flat in Ferryhill in August 2010. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Identical residencies in Ferryhill with a long lease were worth £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 17 April 2091. Given that there were 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of costs.