Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Rothley. Clearly, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Rothley have the right to extend the lease for an additional 90 years in accordance with legislation. Do give due deliberation before delaying your Rothley lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold premises in Rothley with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander |
The lawyers that we work with handle 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.
William owned a 2 bedroom apartment in Rothley on the market with a lease of just over sixty years outstanding. William on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last June we were contacted by Mr Riley González , who purchased a first floor flat in Rothley in November 1999. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable residencies in Rothley with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 invoiced yearly. The lease came to a finish in 2081. Having 55 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.
In 2009 we were e-mailed by Mr and Mrs. N Stewart who, having moved into a basement apartment in Rothley in February 2011. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable flats in Rothley with a long lease were worth £235,200. The average ground rent payable was £45 collected per annum. The lease ended in 2092. Having 66 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.