On the balance of probabilities where you own a flat in Rochford you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Rochford can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Rochford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan was the the leasehold proprietor of a high value apartment in Rochford on the market with a lease of just over 61 years unexpired. Logan informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were approached by Dr Paige Vincent who, having owned a first floor apartment in Rochford in July 2010. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Rochford with a long lease were worth £264,000. The average ground rent payable was £60 collected quarterly. The lease finished in 2079. Taking into account 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.
Last March we were phoned by Dr Logan Murphy , who purchased a recently refurbished flat in Rochford in September 2012. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable homes in Rochford with 100 year plus lease were valued around £220,400. The mid-range ground rent payable was £45 billed every twelve months. The lease finished in 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including professional charges.