Unfortunately that a Rochford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Rochford property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Rochford will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Rochford with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 Rochford can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Rochford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the freeholder of her one bedroom apartment in Rochford, Alicia started the lease extension process as the 80 year mark was rapidly approaching. The transaction completed in May 2011. The landlord’s costs were kept to an absolute minimum.
Last August we were called by Mr and Mrs. W Gray , who owned a newly refurbished flat in Rochford in October 2012. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar homes in Rochford with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2085. Having 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
Dr U Turner owned a basement flat in Rochford in April 1995. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Rochford with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished on 3 November 2096. Taking into account 70 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.