Unfortunately 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 first few years due to the depreciation being disguised by increases in the Rochford property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Rochford will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Rochford with in excess of 100 years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Rochford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rochford valuers.
In 2014 Riley, came dangerously close to the eighty-year mark with the lease on his first floor apartment in Rochford. Having purchased his flat 19 years ago, the length of the lease was of no relevance. Luckily, he recognised he needed to take action soon on Extending the lease. Riley arranged for a lease extension just under the wire last June. Riley and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £925.
In 2013 we were approached by Mrs Anna Morris who, having was assigned a lease of a one bedroom flat in Rochford in July 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Rochford with 100 year plus lease were valued about £220,400. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2089. Having 64 years outstanding we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.
In 2013 we were e-mailed by Ms S Young who, having bought a first floor apartment in Rochford in November 2007. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative homes in Rochford with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated on 13 March 2100. Having 75 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.