It’s a harsh certainty that a Rochester residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Rochester property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Rochester will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Rochester with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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.
During the course of the last few months Sam, came dangerously close to the 80-year threshold with the lease on his first floor flat in Rochester. Having purchased his home two decades ago, the lease term was of little significance. Thankfully, he realised he needed to take steps soon on Extending the lease. Sam extended the lease at the eleventh hour last September. Sam and the freeholder in the end agreed on an amount of £5,500 . If he had missed the deadline, the figure would have increased by a minimum £875.
Ms W Fournier bought a studio apartment in Rochester in June 2012. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Rochester with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 21 October 2083. Given that there were 57 years left we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus fees.
In 2011 we were phoned by Mr and Mrs. V Carter who, having owned a garden apartment in Rochester in June 1999. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Rochester with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed annually. The lease finished in 2103. Given that there were 77 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.