Top reasons for Rothley lease extension

Main reasons to start your Rothley lease extension today:

Increase your lease and increase your Rothley property value

When it comes to domestic leasehold property in Rothley, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years remaining. Leasehold owners in Rothley with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has below eighty years outstanding, under the current statute the landlord can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold properties in Rothley with over 100 years outstanding 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions will not grant a mortgage on a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years remaining at the end of the mortgage. Given that many flats in Rothley were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

What makes us experts in Rothley lease extensions?

Using our service gives you better control over the value of your Rothley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Rothley Lease Extension Case Studies:

Rory, Rothley, Leicestershire

Last October Rory, started to get near to the 80-year threshold with the lease on his purpose- built flat in Rothley. In buying his property two decades ago, the unexpired term was of no significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Rory was able to extend his lease at the eleventh hour last May. Rory and the freeholder via the managing agents eventually settled on an amount of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,075.

Rothley case:

Mr Samuel Scott bought a first floor flat in Rothley in October 1997. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar premises in Rothley with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed per annum. The lease expired in 2104. Having 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.

Rothley case:

Last year we were approach by Dr Lucy James , who purchased a one bedroom flat in Rothley in November 2000. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical residencies in Rothley with a long lease were in the region of £191,000. The average ground rent payable was £65 billed quarterly. The lease finished in 2084. Given that there were 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including fees.