Why you should commence your Netherne lease extension

Top reasons for lease extension now:

Increase your lease and increase your Netherne property value

The market value of a leasehold property in Netherne depends on how many years the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed well before the eighty year mark. Leasehold Reform legislation enables Netherne qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Netherne property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Netherne with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may not grant a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Netherne lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your Netherne leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Netherne Lease Extension Example Cases:

William, Netherne, South London

Half a year ago William, came dangerously close to the eighty-year threshold with the lease on his garden apartment in Netherne. Having bought his flat two decades ago, the lease term was of minimal importance. Fortunately, he realised he needed to take action soon on a lease extension. William extended the lease at the eleventh hour last March. William and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have become more costly by at least £975.

Netherne case:

In 2012 we were contacted by Mr and Mrs. A Wilson who, having completed a studio flat in Netherne in June 2012. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative homes in Netherne with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 11 October 2096. Given that there were 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.