Unfortunately that a Rochdale residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Rochdale property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Rochdale will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Santander |
Lease extensions in Rochdale can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rochdale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison owned a studio flat in Rochdale on the market with a lease of a few days over fifty eight years unexpired. Harrison informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant 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 Harrison to exercise his statutory right. Harrison obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were contacted by Dr Hunter André who, having was assigned a lease of a ground floor apartment in Rochdale in July 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Rochdale with an extended lease were worth £216,000. The average ground rent payable was £60 invoiced yearly. The lease lapsed in 2084. Taking into account 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.
Last Spring we were phoned by Mr and Mrs. N Johnson , who took over the lease of a garden apartment in Rochdale in June 1997. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Similar flats in Rochdale with a long lease were worth £205,000. The average ground rent payable was £50 invoiced yearly. The lease terminated in 2104. Considering the 78 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.