Why you should start your Rochford lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/rochford">Rochford</a> leasehold property depreciates with the years remaining on the lease.
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<p> It’s a harsh truth that a Rochford residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Rochford property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Rochford will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
<h4>Rochford property with a lease extension is almost the same value as a freehold</h4>
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Leasehold residencies in Rochford with in excess of one hundred years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it. <h4>Lenders will not grant a mortgage on a short lease</h4>
The trend since 2008 has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.
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<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Yorkshire Building Society</td>
<td> 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.
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Why use us for your lease extension in Rochford? </h4>
<p> Engaging our service will provide you better control over the value of your Rochford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Rochford Lease Extension Example Cases:
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<h5> Sebastian, Rochford, Essex</h5>
<p> In recent months Sebastian, came very close to the 80-year threshold with the lease on his ground floor apartment in Rochford. Having bought his home two decades ago, the lease term was of no significance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Sebastian extended the lease just under the wire in May. Sebastian and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had gone lower than eighty years, the sum would have increased by a minimum £925.
<h5>Rochford case:</h5>
<p> Ms Rhiannon Cox acquired a ground floor apartment in Rochford in January 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable flats in Rochford with an extended lease were in the region of £237,600. The average amount of ground rent was £45 billed quarterly. The lease finished on 8 January 2093. Having 67 years remaining we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.
<h5>Rochford case:</h5>
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Last Christmas we were approach by Mr and Mrs. C Cox , who
completed a garden apartment in Rochford in April 2005. The question was if we could approximate the price would be for a 90 year lease extension. Comparable premises in Rochford with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced monthly. The lease expiry date was in 2104. Having 78 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
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