Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Rochford. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Rochford have the legal entitlement to extend the lease for a further 90 years under statute. Do give due attention before delaying your Rochford lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Rochford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jude, came perilously close to the 80-year threshold with the lease on his leasehold flat in Rochford. Having purchased his home 19 years previously, the unexpired term was of little interest. Luckily, he recognised he would soon be paying way over the odds for a lease extension. Jude was able to extend his lease just ahead of time in June. Jude and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by at least £900.
In 2011 we were contacted by Ms Poppy Adams who, having was assigned a lease of a purpose-built apartment in Rochford in August 2004. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Rochford with a long lease were valued around £250,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 25 October 2096. Considering the 70 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mr Benjamin Cooper was assigned a lease of a one bedroom flat in Rochford in May 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar flats in Rochford with an extended lease were in the region of £246,800. The average amount of ground rent was £60 billed annually. The lease ended on 22 August 2076. Considering the 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including expenses.