Nether Edge leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Nether Edge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Nether Edge you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Nether Edge flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Nether Edge with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Nether Edge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Nether Edge valuers.
Milo was the the leasehold owner of a conversion flat in Nether Edge being marketed with a lease of just over 72 years unexpired. Milo on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Mr and Mrs. R Jones , who purchased a one bedroom apartment in Nether Edge in April 2010. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Nether Edge with a long lease were valued about £184,000. The average ground rent payable was £55 collected every twelve months. The lease ran out on 15 April 2079. Considering the 53 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
Mr and Mrs. P Ward completed a garden flat in Nether Edge in January 2010. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar properties in Nether Edge with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 25 April 2099. Given that there were 73 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.