The market value of a leasehold property in Rochdale is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded well before the eighty year threshold. Statute entitles Rochdale qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Rochdale leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her first floor flat in Rochdale, Rosie initiated the lease extension process as the 80 year mark was rapidly nearing. The transaction completed in May 2013. The freeholder’s charges were restricted to about 600 pounds.
Mrs Jessica Bell took over the lease of a one bedroom apartment in Rochdale in March 1998. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable properties in Rochdale with a long lease were valued around £205,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2104. Having 79 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
In 2014 we were phoned by Mr and Mrs. I Michel who, having purchased a basement flat in Rochdale in July 2010. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable homes in Rochdale with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2093. Given that there were 68 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.