Top reasons for Rothley lease extension

Why you should commence your Rothley lease extension today:

A Rothley lease depreciates with the years remaining on the lease.

Rothley leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Rothley will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.

Rothley property with a lease extension is almost the same value as a freehold

Leasehold properties in Rothley with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get jittery at around 75 years. This will be problematic once you come to dispose of or remortgage your property as it will be effectively unmortgageable. Even though you may have no imminent plan to sell but when you do your buyer must wait 2 years before they can initiate the legal procedures for an extension to the lease.

Get in touch with one of our Rothley lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Rothley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rothley valuers.

Rothley Lease Extension Case Studies:

Edward, Rothley, Leicestershire,

Edward was the the leasehold proprietor of a 2 bedroom flat in Rothley on the market with a lease of fraction over fifty eight years unexpired. Edward informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Edward to invoke his statutory right. Edward procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.

Rothley case:

Mr and Mrs. Y Cooper completed a studio apartment in Rothley in March 2011. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Rothley with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated on 15 May 2100. Taking into account 74 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.

Rothley case:

In 2010 we were approached by Ms W François who, having owned a ground floor flat in Rothley in July 1995. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Rothley with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected annually. The lease ended in 2080. Given that there were 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including costs.