The market value of a leasehold property in Rocester is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year cut off point. Current legislation entitles Rocester qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Rocester with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Rocester leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her garden apartment in Rocester, Poppy commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension completed in February 2010. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were approach by Mr William Lambert , who completed a first floor flat in Rocester in July 2000. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Rocester with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced annually. The lease ended in 2106. Having 80 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
Dr George Flores owned a ground floor apartment in Rocester in March 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Rocester with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 invoiced yearly. The lease ended on 17 August 2086. Considering the 60 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus professional charges.