The re-sale value of a leasehold property in Rochford depends on how long the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year cut off point. Statute enables Rochford qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Rochford with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Rochford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a 2 bedroom apartment in Rochford on the market with a lease of a little over 72 years left. Gabriel informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Spring we were e-mailed by Mr Cameron Evans , who took over the lease of a purpose-built flat in Rochford in September 2007. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparative flats in Rochford with a long lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2087. Having 61 years unexpired we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including professional charges.
Mr E Richardson took over the lease of a purpose-built flat in Rochford in October 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Rochford with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2098. Considering the 72 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.