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 gets more expensive. Legislation has been in place for sometime now allowing qualifying Rothwell residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rothwell you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Rothwell with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Rothwell can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Rothwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the landlord of her ground floor apartment in Rothwell, Danielle initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in March 2014. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Dr Hannah Johnson who, having acquired a one bedroom apartment in Rothwell in October 2005. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar homes in Rothwell with 100 year plus lease were valued around £240,600. The average ground rent payable was £60 billed per annum. The lease expired on 15 September 2088. Having 62 years unexpired we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.
Last Winter we were called by Mr and Mrs. W Johnson , who took over the lease of a garden apartment in Rothwell in July 2002. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Rothwell with an extended lease were valued around £174,200. The average ground rent payable was £55 collected annually. The lease ran out on 23 July 2077. Considering the 51 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.