Rochford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Rochford tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Rochford you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Rochford flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Rochford with over one hundred years outstanding on the lease are often 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 buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her garden apartment in Rochford, Jade started the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction was concluded in September 2014. The landlord’s costs were kept to an absolute minimum.
In 2013 we were approached by Mrs H Mercier who, having was assigned a lease of a first floor apartment in Rochford in January 2007. The question was if we could approximate the price would be to extend the lease by ninety years. Comparable premises in Rochford with an extended lease were valued around £256,600. The mid-range ground rent payable was £60 billed yearly. The lease expired on 28 July 2077. Considering the 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus fees.
Last month we were phoned by Mrs Imogen Hall , who moved into a one bedroom flat in Rochford in September 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Rochford with an extended lease were valued around £218,000. The average amount of ground rent was £45 collected yearly. The lease expired in 2088. Given that there were 63 years left we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of costs.