Rothley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Rothley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rothley you should check if your lease has between seventy and 90 years remaining. There are good reasons why a Rothley flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Rothley with over one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a landlord in Rothley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rothley valuers.
George was the the leasehold owner of a high value apartment in Rothley on the market with a lease of a little over 59 years outstanding. George informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were George to invoke his statutory right. George procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Ms R Leroy moved into a basement apartment in Rothley in July 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Rothley with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease expiry date was on 14 July 2090. Having 64 years remaining we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of costs.
In 2010 we were contacted by Ms Bethan Jones who, having was assigned a lease of a one bedroom apartment in Rothley in September 2010. The question was if we could estimate the price could be for a ninety year lease extension. Comparable properties in Rothley with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed quarterly. The lease ended on 8 January 2101. Given that there were 75 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.