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 gets more expensive. The majority of owners of residential leasehold property in Rochford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rochford you would be well advised to check if your lease has between 70 and ninety years left. There are compelling reasons why a Rochford flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
Leasehold premises in Rochford with more than 100 years unexpired 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rochford can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge dealing with Rochford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah owned a high value apartment in Rochford being sold with a lease of a little over 72 years left. Elijah informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mrs Jennifer Dupont bought a basement apartment in Rochford in September 2000. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar flats in Rochford with a long lease were in the region of £255,000. The average amount of ground rent was £50 collected every twelve months. The lease ended on 24 July 2097. Taking into account 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Mr K Bertrand owned a purpose-built apartment in Rochford in October 2011. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Rochford with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed annually. The lease terminated on 14 July 2077. Given that there were 51 years outstanding we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of fees.