The market value of a leasehold property in Rochdale depends on how long the lease has remaining. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed ahead of the eighty year mark. Current legislation enables Rochdale qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Rochdale with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Rochdale can be a difficult process. We recommend you get professional help from a lawyer and valuer 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.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her studio apartment in Rochdale, Chantelle commenced the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was concluded in July 2005. The freeholder’s costs were kept to an absolute minimum.
Last year we were called by Mr and Mrs. H Hernández , who purchased a one bedroom flat in Rochdale in November 2003. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable properties in Rochdale with an extended lease were worth £295,000. The average amount of ground rent was £50 invoiced every twelve months. The lease expiry date was in 2100. Considering the 75 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last Winter we were contacted by Dr I Girard , who was assigned a lease of a ground floor flat in Rochdale in June 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparable premises in Rochdale with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2089. Given that there were 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.