Rochdale leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Rochdale tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rochdale you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Rochdale with over one hundred years remaining on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Rochdale leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her one bedroom flat in Rochdale, Lucy commenced the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in February 2011. The freeholder’s fees were restricted to a tad over 700 GBP.
Last Summer we were e-mailed by Ms K Garcia , who purchased a one bedroom apartment in Rochdale in May 2004. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical residencies in Rochdale with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2102. Considering the 76 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
Dr Alfie Lee took over the lease of a basement apartment in Rochdale in August 2011. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Rochdale with a long lease were in the region of £257,800. The average ground rent payable was £65 invoiced monthly. The lease concluded in 2091. Considering the 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.