There is no doubt about it a leasehold flat or house in Rochford is a wasting asset as a result of the shortening lease. Where the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Rochford will qualify for this right; nevertheless a conveyancer will be able to advise if you qualify 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.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Rochford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rochford valuers.
Leo was the the leasehold owner of a conversion apartment in Rochford being marketed with a lease of just over 72 years left. Leo informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2012 we were called by Dr F Lambert who, having bought a studio flat in Rochford in January 1996. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative residencies in Rochford with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease end date was on 9 January 2101. Having 76 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2013 we were phoned by Ms M Campbell who, having was assigned a lease of a basement flat in Rochford in April 2004. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Rochford with an extended lease were in the region of £176,200. The average amount of ground rent was £65 collected annually. The lease elapsed on 12 March 2081. Taking into account 56 years unexpired we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including professional charges.