Rothwell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Rothwell tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Rothwell you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Rothwell leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same 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 decades to come.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Rothwell,the lease extension lawyers 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.
During the course of the last few months Edward, started to get near to the 80-year mark with the lease on his basement flat in Rothwell. In buying his property 18 years previously, the unexpired term was of minimal relevance. Luckily, he recognised he needed to take action soon on a lease extension. Edward extended the lease just in the nick of time in March. Edward and the freeholder via the managing agents eventually settled on an amount of £5,500 . If the lease had dropped to less than eighty years, the price would have escalated by a minimum £850.
Mr and Mrs. G Bailey took over the lease of a one bedroom apartment in Rothwell in May 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Rothwell with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 collected every twelve months. The lease came to a finish on 23 July 2095. Considering the 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
In 2012 we were called by Mr and Mrs. J Hall who, having took over the lease of a studio flat in Rothwell in September 2007. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Rothwell with a long lease were valued around £216,000. The average ground rent payable was £60 billed quarterly. The lease came to a finish on 19 August 2084. Considering the 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.