With a residential leasehold property in Rochford, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years left. Leasehold owners in Rochford with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Rochford with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Rochford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rochford valuers.
Trailing lengthy negotiations with the landlord of her studio apartment in Rochford, Alisha initiated the lease extension process just as the lease was coming close to the critical eighty-year threshold. The transaction was finalised in March 2006. The freeholder’s charges were restricted to less than 700 GBP.
Last March we were called by Dr F Rodríguez , who took over the lease of a one bedroom apartment in Rochford in October 2006. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Rochford with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ended in 2091. Having 70 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2014 we were contacted by Dr G Sharif who, having bought a one bedroom flat in Rochford in March 1997. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Rochford with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected annually. The lease expired on 25 March 2071. Taking into account 50 years left we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 not including costs.