Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Rothbury. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Rothbury have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give due consideration before putting off your Rothbury lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold premises in Rothbury with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Rothbury,the lease extension lawyers 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 Rothbury valuers.
In recent months Eliot, started to get close to the 80-year threshold with the lease on his ground floor flat in Rothbury. In buying his home twenty years previously, the length of the lease was of little bearing. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Eliot arranged for a lease extension at the eleventh hour in August. Eliot and the freeholder via the management company subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,150.
In 2010 we were called by Mr and Mrs. F Jones who, having owned a basement flat in Rothbury in September 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Rothbury with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced annually. The lease ended in 2105. Considering the 79 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. N Edwards moved into a studio apartment in Rothbury in November 2006. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Rothbury with an extended lease were worth £275,000. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2094. Taking into account 68 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.