Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Rotherham. Inevitably, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Rotherham have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Rotherham lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in Rotherham can be a difficult process. We recommend you obtain professional help from a conveyancer 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 in-depth market knowledge 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.
Jonathan owned a high value apartment in Rotherham being marketed with a lease of fraction over 61 years left. Jonathan on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last Winter we were e-mailed by Mr and Mrs. K Clark , who owned a first floor apartment in Rotherham in March 2009. We are asked if we could approximate the price could be for a 90 year lease extension. Similar properties in Rotherham with an extended lease were worth £280,000. The average ground rent payable was £55 billed monthly. The lease came to a finish on 15 March 2102. Considering the 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Dr H Evans completed a purpose-built flat in Rotherham in June 1995. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Rotherham with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease end date was in 2082. Taking into account 57 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.