Rotherham residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Rotherham with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Rotherham leasehold, as your property will be more valuable and saleable in respect 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.
Subsequent to lengthy negotiations with the freeholder of her purpose-built flat in Rotherham, Georgia commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was finalised in April 2009. The landlord’s costs were negotiated to a tad over 450 pounds.
Last July we were e-mailed by Dr Milo Ward , who acquired a studio flat in Rotherham in August 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Rotherham with a long lease were in the region of £191,000. The average ground rent payable was £65 collected per annum. The lease lapsed in 2083. Taking into account 58 years unexpired we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.
Mr and Mrs. O Pérez was assigned a lease of a newly refurbished flat in Rotherham in June 2011. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparative premises in Rotherham with a long lease were worth £250,000. The average amount of ground rent was £50 billed every twelve months. The lease end date was in 2094. Given that there were 69 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.