When it comes to residential leasehold premises in Rochester, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Rochester with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has below eighty years remaining, under the relevant statute the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Rochester with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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. |
Lease extensions in Rochester can be a difficult process. We recommend you get guidance from a conveyancer 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 a wealth of experience procuring Rochester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her ground floor apartment in Rochester, Kayleigh commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work was concluded in September 2015. The freeholder’s charges were restricted to slightly above 550 GBP.
In 2011 we were called by Mr Reuben Sharif who, having was assigned a lease of a newly refurbished flat in Rochester in November 2003. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative homes in Rochester with a long lease were valued about £181,600. The mid-range ground rent payable was £55 billed annually. The lease expired in 2077. Having 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.
Mr and Mrs. F Ricardo was assigned a lease of a basement flat in Rochester in February 2005. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar properties in Rochester with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed in 2097. Given that there were 72 years outstanding we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus professional charges.