There is no doubt about it a leasehold property in Rochester is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Rochester will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Rochester with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Rochester can be a difficult process. We recommend you obtain 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 a wealth of experience dealing with Rochester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Edward, came precariously close to the 80-year threshold with the lease on his first floor apartment in Rochester. In buying his property twenty years ago, the unexpired term was of minimal concern. by good luck, he recognised he needed to take action soon on a lease extension. Edward arranged for a lease extension just under the wire in March. Edward and the landlord subsequently settled on the final figure of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,025.
Mr and Mrs. M Morris took over the lease of a one bedroom apartment in Rochester in September 2003. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Rochester with an extended lease were in the region of £240,600. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2088. Taking into account 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
In 2013 we were e-mailed by Ms N Wright who, having bought a garden apartment in Rochester in May 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable homes in Rochester with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 invoiced yearly. The lease expiry date was on 5 February 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.