Rochford leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Rochford will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Rochford leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the landlord of her garden flat in Rochford, Kirsty initiated the lease extension process just as her lease was nearing the critical 80-year mark. The legal work completed in November 2009. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. D Campbell , who was assigned a lease of a one bedroom flat in Rochford in August 2009. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Rochford with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease concluded in 2081. Having 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Last Winter we were approach by Mr Jasper Carter , who purchased a garden flat in Rochford in August 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Rochford with a long lease were in the region of £237,600. The average amount of ground rent was £45 invoiced annually. The lease terminated on 22 August 2092. Having 67 years left we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including legals.