The market value of a leasehold property in Netherley depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised ahead of the 80 year cut off point. Statute enables Netherley qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Netherley with more than 100 years left 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Netherley,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 in-depth market knowledge and the close ties they enjoy with Netherley valuers.
Tyler owned a conversion flat in Netherley being marketed with a lease of just over sixty years left. Tyler informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were contacted by Dr Kyle Moore who, having took over the lease of a recently refurbished flat in Netherley in June 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Netherley with an extended lease were worth £240,600. The average amount of ground rent was £60 billed annually. The lease came to a finish on 14 February 2087. Taking into account 62 years left we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Mr E Wood took over the lease of a basement apartment in Netherley in October 1997. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparative flats in Netherley with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease finished in 2076. Having 51 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.