As the the remaining lease term of a Rocester residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 125 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Rocester will meet the qualifying criteria; that being said a lawyer will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Rocester can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 dealing with Rocester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben was the the leasehold owner of a studio flat in Rocester being sold with a lease of fraction over 59 years outstanding. Reuben informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Summer we were phoned by Mr Joseph Morel , who owned a garden apartment in Rocester in April 2002. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Rocester with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 billed yearly. The lease ended in 2082. Taking into account 56 years unexpired we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including expenses.
Last Autumn we were phoned by Ms F Davies , who purchased a studio flat in Rocester in March 2008. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative homes in Rocester with a long lease were in the region of £237,600. The average ground rent payable was £45 collected every twelve months. The lease ran out on 20 April 2093. Given that there were 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.