The only way is down when it comes to Rochdale lease terms. Rochdale flats that have a residual term shorter than eighty years will reduce in value even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rochdale can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge procuring Rochdale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the freeholder of her first floor flat in Rochdale, Alicia started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was finalised in April 2013. The landlord’s charges were restricted to under 500 GBP.
Last Winter we were approach by Mr and Mrs. B Edwards , who moved into a first floor apartment in Rochdale in March 2008. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar premises in Rochdale with a long lease were worth £206,200. The mid-range amount of ground rent was £55 collected quarterly. The lease ran out in 2082. Considering the 56 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
Last year we were called by Dr Tommy Richardson , who bought a ground floor apartment in Rochdale in September 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Rochdale with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended on 8 November 2102. Given that there were 76 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.