The re-sale value of a leasehold property in Netherne depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year cut off point. Current legislation enables Netherne qualifying lessees to an additional term of ninety years over and above the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Netherne with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Netherne,the lease extension experts 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 Netherne valuers.
Benjamin owned a conversion apartment in Netherne being marketed with a lease of fraction over fifty eight years remaining. Benjamin informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Mr and Mrs. G Rivera was assigned a lease of a one bedroom flat in Netherne in March 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical residencies in Netherne with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed on 26 March 2081. Given that there were 56 years unexpired we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.
An example of a Freehold Enfranchisement case for a Netherne flat is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case related to 3 flats. The remaining number of years on the lease was 75 years.