When it comes to residential leasehold premises in Rochford, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Residents in Rochford with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than 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 residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Rochford can be a difficult process. We recommend you secure professional help from a conveyancer 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 a wealth of experience procuring Rochford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her ground floor flat in Rochford, Jennifer started the lease extension process just as her lease was approaching the all-important 80-year deadline. The legal work completed in June 2006. The freeholder’s costs were kept to an absolute minimum.
Ms Lucy White took over the lease of a one bedroom flat in Rochford in July 2009. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Rochford with an extended lease were in the region of £203,200. The average amount of ground rent was £65 invoiced quarterly. The lease concluded on 9 November 2086. Considering the 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
Ms Jennifer Martin was assigned a lease of a studio flat in Rochford in June 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Rochford with a long lease were worth £260,000. The average amount of ground rent was £50 collected every twelve months. The lease ended in 2097. Given that there were 72 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.