The nearer a residential lease in Rothley nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Rothley will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with undertake Rothley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Omar, came perilously close to the 80-year mark with the lease on his purpose- built flat in Rothley. Having purchased his flat two decades ago, the lease term was of no importance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Omar arranged for a lease extension just under the wire in June. Omar and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If the lease had slipped lower than eighty years, the premium would have escalated by a minimum £1,150.
In 2014 we were phoned by Mr and Mrs. R Torres who, having moved into a recently refurbished flat in Rothley in August 2008. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar flats in Rothley with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 billed quarterly. The lease terminated on 10 July 2094. Taking into account 69 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. S François took over the lease of a one bedroom apartment in Rothley in August 2004. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable homes in Rothley with a long lease were in the region of £290,000. The mid-range ground rent payable was £60 collected yearly. The lease ran out in 2105. Considering the 80 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.