The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rochester have the right to extend the lease for an additional 90 years under statute. Please give careful consideration before delaying your Rochester lease extension. Putting off that expense today simply increases the premium you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Rochester leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dylan owned a 2 bedroom apartment in Rochester being marketed with a lease of a little over sixty years unexpired. Dylan on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert advice and secured an acceptable resolution informally and readily saleable.
Last Autumn we were contacted by Mr V Gray , who took over the lease of a studio apartment in Rochester in March 2008. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Rochester with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 8 June 2090. Given that there were 64 years remaining we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
Mr and Mrs. C Mitchell acquired a newly refurbished apartment in Rochester in July 2003. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Rochester with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease termination date was on 19 January 2079. Having 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.