Netherley leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Netherley will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Netherley with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Netherley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Netherley valuers.
Two years ago Luke, started to get close to the 80-year mark with the lease on his two bedroom flat in Netherley. Having bought his home two decades ago, the length of the lease was of minimal significance. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Luke arranged for a lease extension at the eleventh hour in March. Luke and the freeholder subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £900.
In 2014 we were approached by Mr and Mrs. A James who, having was assigned a lease of a studio flat in Netherley in January 1997. The question was if we could estimate the price would be to extend the lease by 90 years. Comparable residencies in Netherley with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated on 6 February 2095. Taking into account 69 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Last Winter we were approach by Mr Seth Rose , who completed a recently refurbished flat in Netherley in July 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Netherley with a long lease were worth £216,000. The average amount of ground rent was £60 billed per annum. The lease elapsed in 2084. Given that there were 58 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.