Unfortunately that a Rothwell residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Rothwell property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Rothwell will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 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 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Rothwell 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 lawyer we work with provide it.
In 2014 Benjamin, came very close to the 80-year mark with the lease on his purpose- built apartment in Rothwell. Having purchased his home 18 years previously, the lease term was of no interest. As luck would have it, he realised he needed to take steps soon on a lease extension. Benjamin extended the lease at the eleventh hour in August. Benjamin and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the price would have become more costly by at least £1,000.
Last Christmas we were contacted by Mr and Mrs. C Richardson , who completed a garden apartment in Rothwell in May 2006. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative residencies in Rothwell with a long lease were valued around £181,600. The average amount of ground rent was £55 invoiced annually. The lease lapsed in 2077. Having 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
Last Autumn we were called by Ms O Alexander , who completed a purpose-built apartment in Rothwell in March 1997. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Rothwell with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed in 2097. Having 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.