The only way is down when it comes to Rotherham lease terms. Rotherham flats that have a residual term lower than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will rise.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Rotherham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rotherham valuers.
Michael was the the leasehold proprietor of a conversion flat in Rotherham being sold with a lease of just over 61 years unexpired. Michael on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Dr J Evans took over the lease of a basement apartment in Rotherham in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Rotherham with an extended lease were worth £208,200. The average ground rent payable was £65 invoiced quarterly. The lease finished on 14 October 2086. Taking into account 61 years remaining we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including expenses.
In 2012 we were called by Mrs Anna Gunderson who, having was assigned a lease of a studio flat in Rotherham in November 2009. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparable premises in Rotherham with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease expiry date was in 2097. Having 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.