It’s an underpublicised certainty that a Rotherham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Rotherham property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Rotherham will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB |
Lease extensions in Rotherham can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rotherham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a 2 bedroom flat in Rotherham on the market with a lease of just over 59 years unexpired. Finn on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. R Roux purchased a first floor apartment in Rotherham in July 1996. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar homes in Rotherham with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 collected annually. The lease ended on 21 March 2089. Considering the 63 years as a residual term we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of expenses.
Dr Tommy Moore purchased a purpose-built flat in Rotherham in April 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Rotherham with an extended lease were valued around £270,000. The average ground rent payable was £55 collected monthly. The lease ran out on 9 January 2100. Having 74 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.