With a long leasehold premises in Rotherham, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Rotherham with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Rotherham with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rotherham can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Rotherham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the freeholder of her leasehold flat in Rotherham, Melissa initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work completed in November 2015. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were called by Ms M López , who purchased a garden apartment in Rotherham in September 1997. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative residencies in Rotherham with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced yearly. The lease finished in 2094. Taking into account 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Winter we were called by Mr Y Evans , who took over the lease of a one bedroom flat in Rotherham in April 1996. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar residencies in Rotherham with a long lease were valued about £285,000. The average ground rent payable was £55 billed annually. The lease ran out in 2105. Considering the 79 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.