When it comes to long leasehold premises in Rochester, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted 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 rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Rochester with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years left, under the current statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors 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.
Dylan was the the leasehold owner of a high value flat in Rochester being sold with a lease of a little over sixty years remaining. Dylan on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. U Rivera owned a one bedroom flat in Rochester in June 2003. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar flats in Rochester with 100 year plus lease were valued around £223,400. The average ground rent payable was £60 collected yearly. The lease came to a finish on 9 September 2084. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of expenses.
Last July we were e-mailed by Dr Natasha François , who took over the lease of a studio apartment in Rochester in May 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Rochester with a long lease were valued around £205,000. The average ground rent payable was £50 billed quarterly. The lease expired on 4 July 2104. Having 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.