The closer a residential lease in Rochester nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 100 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Rochester will qualify for this right; however a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Rochester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following protracted correspondence with the landlord of her two bedroom flat in Rochester, Maisie commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was concluded in July 2008. The freeholder’s charges were kept to an absolute minimum.
Last month we were approach by Mr Connor Vincent , who was assigned a lease of a ground floor flat in Rochester in June 2006. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Rochester with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expiry date was in 2102. Given that there were 76 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2012 we were phoned by Ms U Gómez who, having completed a first floor flat in Rochester in March 2001. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical properties in Rochester with a long lease were in the region of £257,800. The average ground rent payable was £65 collected quarterly. The lease ran out in 2091. Given that there were 65 years remaining we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus costs.