Rothwell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Rothwell enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rothwell you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Rothwell with over 100 years left on the lease are sometimes 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 reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Rothwell,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rothwell valuers.
Half a year ago Jason, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Rothwell. In buying his flat two decades ago, the lease term was of no interest. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Jason extended the lease at the eleventh hour last July. Jason and the freeholder subsequently settled on sum of £5,500 . If the lease had gone below eighty years, the premium would have escalated by a minimum £875.
Last Spring we were contacted by Mr and Mrs. J Peterson , who purchased a basement flat in Rothwell in August 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Rothwell with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease terminated on 23 November 2101. Given that there were 76 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last Spring we were called by Dr Reuben Carter , who took over the lease of a studio flat in Rothwell in May 2011. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar properties in Rothwell with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected per annum. The lease lapsed in 2090. Taking into account 65 years outstanding we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.