The market value of Rotherham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years
Leasehold properties in Rotherham with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Rotherham,the lease extension experts 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.
Alex owned a studio flat in Rotherham on the market with a lease of just over sixty years unexpired. Alex on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were phoned by Dr B King , who took over the lease of a ground floor apartment in Rotherham in September 2000. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative properties in Rotherham with an extended lease were worth £255,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2096. Taking into account 70 years outstanding we approximated the premium to the landlord for the lease extension to be within £10,500 and £12,000 plus expenses.
Ms O Cox acquired a one bedroom apartment in Rotherham in January 2006. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Rotherham with a long lease were valued around £246,800. The average amount of ground rent was £60 collected annually. The lease expired in 2076. Considering the 50 years unexpired we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of legals.