Main reasons to commence your Rochdale lease extension

Why you should start your Rochdale lease extension today:

A Rochdale lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Rochdale, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Rochdale with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than eighty years left, under the relevant statute the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may decide not to issue a mortgage on a short lease

Lenders are making their criteria more stringent and a meaningful number now want flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering plenty of flats in Rochdale were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.

Get in touch with one of our Rochdale lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Rochdale,the lease extension solicitors 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 Rochdale valuers.

Rochdale Lease Extension Case Studies:

Connor, Rochdale, Greater Manchester,

Connor was the the leasehold owner of a studio apartment in Rochdale being sold with a lease of fraction over 59 years remaining. Connor informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and secured an acceptable deal informally and readily saleable.

Rochdale case:

Last Autumn we were called by Dr Jackson Murphy , who moved into a studio flat in Rochdale in November 1998. The question was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Rochdale with a long lease were worth £290,000. The average ground rent payable was £45 collected monthly. The lease concluded in 2099. Given that there were 73 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.

Rochdale case:

In 2013 we were phoned by Mr and Mrs. E Robinson who, having acquired a first floor flat in Rochdale in August 2012. The question was if we could estimate the price would be to extend the lease by ninety years. Identical premises in Rochdale with an extended lease were in the region of £240,600. The average amount of ground rent was £60 billed monthly. The lease finished in 2088. Having 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.