Rothley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Rothley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rothley you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancer we work with provide it.
During the course of the last few months Freddie, came critically near to the eighty-year mark with the lease on his one bedroom flat in Rothley. Having bought his property two decades ago, the length of the lease was of little relevance. by good luck, he noticed he needed to take action soon on a lease extension. Freddie extended the lease just under the wire in July. Freddie and the landlord subsequently agreed on a premium of £5,500 . If the lease had gone to less than eighty years, the figure would have escalated by at least £850.
In 2009 we were phoned by Mr and Mrs. W Ward who, having moved into a one bedroom flat in Rothley in August 2011. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative properties in Rothley with an extended lease were valued around £242,600. The average ground rent payable was £45 billed quarterly. The lease finished in 2093. Having 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Mrs A Patel moved into a ground floor apartment in Rothley in April 2009. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Rothley with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 billed per annum. The lease came to a finish in 2104. Given that there were 78 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.