The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Rochford can extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Rochford lease extension. Putting off that expense today simply escalates the price you will eventually be required to pay to extend the lease.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Rochford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rochford valuers.
In the wake of 6 months of lengthy discussions with the landlord of her basement apartment in Rochford, Abbie initiated the lease extension process as the 80 year threshold was fast advancing. The lease extension completed in August 2005. The landlord’s costs were negotiated to below 700 GBP.
Mrs L Wilson moved into a basement flat in Rochford in July 2003. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar premises in Rochford with 100 year plus lease were worth £168,800. The average ground rent payable was £60 collected annually. The lease terminated on 22 May 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
Mr J Thompson completed a one bedroom flat in Rochford in October 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Rochford with a long lease were in the region of £235,200. The average amount of ground rent was £45 collected every twelve months. The lease ended on 27 May 2092. Given that there were 66 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.