Chances are that if you own a flat in Rochford you actually own a long leasehold interest over your property
Leasehold properties in Rochford with in excess of one hundred 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Rochford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rochford valuers.
Muhammad was the the leasehold owner of a studio apartment in Rochford on the market with a lease of a little over 59 years outstanding. Muhammad informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Last Spring we were e-mailed by Mrs F Wright , who completed a one bedroom apartment in Rochford in September 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Rochford with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired in 2082. Considering the 57 years as a residual term we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of fees.
Last Christmas we were approach by Mr and Mrs. J Bailey , who owned a ground floor apartment in Rochford in September 2002. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar premises in Rochford with 100 year plus lease were in the region of £245,000. The average amount of ground rent was £50 billed every twelve months. The lease lapsed in 2093. Given that there were 68 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.