Rotherham leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Rotherham will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service will provide you increased control over the value of your Rotherham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Max, started to get near to the 80-year threshold with the lease on his garden flat in Rotherham. In buying his property twenty years ago, the length of the lease was of little concern. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Max arranged for a lease extension just in the nick of time in August. Max and the freeholder via the management company eventually settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,100.
Last year we were e-mailed by Mr and Mrs. J Martinez , who purchased a one bedroom flat in Rotherham in May 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Rotherham with an extended lease were worth £290,000. The average amount of ground rent was £60 billed yearly. The lease elapsed on 15 July 2106. Taking into account 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
In 2011 we were e-mailed by Dr K Lefebvre who, having took over the lease of a ground floor apartment in Rotherham in June 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Rotherham with a long lease were worth £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed on 4 June 2086. Considering the 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus costs.