Why you should start your Netherley lease extension

Why you should commence your Netherley lease extension today:

A Netherley leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Netherley is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year cut off point. Current legislation entitles Netherley qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

Netherley property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.

Lenders may decide not to loan monies with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This will be problematic once you come to sell or refinance your property as it will be practically unmortgageable. You may have no imminent plan to sell but when you do your buyer will need to hold off for a couple of years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Netherley?

Engaging our service will provide you increased control over the value of your Netherley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.

Netherley Lease Extension Case Studies:

Milo, Netherley, Merseyside

16 months ago Milo, came precariously near to the 80-year mark with the lease on his purpose- built flat in Netherley. Having purchased his flat two decades ago, the lease term was of minimal bearing. Fortunately, he became aware that he needed to take steps soon on a lease extension. Milo extended the lease at the eleventh hour last July. Milo and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If the lease had dipped lower than 80 years, the premium would have become more exhorbitant by at least £1,050.

Netherley case:

Last Winter we were phoned by Dr P Pérez , who purchased a basement apartment in Netherley in July 2000. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Netherley with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 billed monthly. The lease expired in 2083. Having 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.

Netherley case:

Ms Georgina Sánchez purchased a studio flat in Netherley in June 2006. The question was if we could approximate the price could be for a 90 year lease extension. Identical residencies in Netherley with a long lease were in the region of £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2103. Considering the 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.