The only way is down when it comes to Roker lease terms. Roker flats that have a residual term less than than eighty years will drop in value at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Roker leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Logan, came critically near to the 80-year threshold with the lease on his leasehold apartment in Roker. Having bought his flat two decades ago, the lease term was of no bearing. Luckily, he noticed he needed to take steps soon on a lease extension. Logan arranged for a lease extension just ahead of time last March. Logan and the freeholder eventually settled on an amount of £5,500 . If he had missed the deadline, the premium would have gone up by a minimum £1,125.
Mrs Phoebe Hernández acquired a one bedroom flat in Roker in September 1995. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative properties in Roker with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 collected yearly. The lease lapsed in 2079. Given that there were 54 years left we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.
In 2010 we were called by Mrs Y Edwards who, having took over the lease of a newly refurbished apartment in Roker in April 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Roker with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2090. Considering the 65 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.