Rothley leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Rothley will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 conveyancing solicitor we work with provide it.
Dylan was the the leasehold proprietor of a 2 bedroom apartment in Rothley being marketed with a lease of a few days over fifty eight years outstanding. Dylan informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2010 we were approached by Mr Y Campbell who, having was assigned a lease of a ground floor apartment in Rothley in September 1997. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Similar residencies in Rothley with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 invoiced yearly. The lease expired on 27 November 2086. Given that there were 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including fees.
Dr W Hill owned a ground floor flat in Rothley in May 2005. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Rothley with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was in 2097. Given that there were 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.