It’s an underpublicised certainty that a Nether Edge residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Nether Edge property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Nether Edge will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Nether Edge with more than one hundred 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Nether Edge can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
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 procuring Nether Edge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel was the the leasehold owner of a studio apartment in Nether Edge being sold with a lease of just over 61 years unexpired. Daniel informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr O Laurent purchased a one bedroom apartment in Nether Edge in May 2003. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative residencies in Nether Edge with an extended lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease expired on 5 April 2089. Having 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.
Dr Aarav Leroy was assigned a lease of a first floor flat in Nether Edge in April 2005. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Nether Edge with an extended lease were valued around £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease ran out in 2079. Considering the 54 years left we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.