The re-sale value of a leasehold property in Rothwell depends on how long the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed ahead of the 80 year mark. Current legislation entitles Rothwell qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Rothwell,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rothwell valuers.
In 2014 Ethan, started to get close to the eighty-year mark with the lease on his first floor apartment in Rothwell. Having purchased his flat two decades ago, the length of the lease was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Ethan arranged for a lease extension just under the wire last April. Ethan and the freeholder via the management company in the end agreed on an amount of £5,000 . If the lease had dropped to less than eighty years, the price would have escalated by a minimum £850.
In 2009 we were phoned by Mrs J García who, having purchased a recently refurbished flat in Rothwell in November 1996. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar flats in Rothwell with a long lease were worth £267,600. The mid-range ground rent payable was £65 collected per annum. The lease concluded in 2093. Having 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 not including costs.
Mrs Isabelle Nelson was assigned a lease of a basement apartment in Rothwell in April 1996. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative premises in Rothwell with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease terminated in 2082. Taking into account 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.