The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Netherley have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Netherley lease extension. Shelving the costs now simply escalates the amount you will eventually be required to pay to extend the lease.
Leasehold properties in Netherley with over 100 years unexpired 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
| 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 experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Netherley valuers.
In recent months Ollie, started to get near to the eighty-year mark with the lease on his studio apartment in Netherley. In buying his home 18 years ago, the lease term was of little relevance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Ollie was able to extend his lease just ahead of time in July. Ollie and the freeholder subsequently agreed on an amount of £5,500 . If the lease had descended below 80 years, the sum would have become more costly by at least £950.
In 2009 we were approached by Dr Jayden Moreau who, having moved into a studio flat in Netherley in February 2009. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable premises in Netherley with a long lease were worth £181,600. The average ground rent payable was £55 collected monthly. The lease termination date was on 28 March 2078. Considering the 52 years outstanding we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.
Last year we were called by Ms Rhiannon Scott , who took over the lease of a studio apartment in Netherley in April 2012. The question was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical homes in Netherley with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2098. Given that there were 72 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.