Top reasons for Rochdale lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Why you should start your Rochdale lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/rochdale">Rochdale</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p>
Rochdale leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Rochdale enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rochdale you should see if your lease has between seventy and ninety years left. 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 pay is what is known as a marriage value <h4>Rochdale property with a lease extension has roughly the same value as a freehold</h4>
<p>
Leasehold properties in Rochdale with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it. <h4>Lending institutions will not grant a mortgage on a short lease</h4> Most high street banks are tightening their criteria and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Considering a number of flats in Rochdale were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
</tbody>
</table>
</div>
</div>
<h4>
What makes us experts in Rochdale lease extensions?
</h4>
<p> Irrespective of whether you are a tenant or a freeholder in Rochdale,the lease extension solicitors that we work with will always be prepared 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.
<h4>
Rochdale Lease Extension Example Cases:
</h4>
<h5> David, Rochdale, Greater Manchester</h5>
<p> In recent months David, came precariously close to the 80-year threshold with the lease on his studio apartment in Rochdale. Having purchased his home twenty years ago, the unexpired term was of minimal significance. Fortunately, he became aware that he needed to take action soon on Extending the lease. David arranged for a lease extension just under the wire last August. David and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have gone up by at least £900.
<h5>Rochdale case:</h5>
<p> Mr W Anderson owned a one bedroom apartment in Rochdale in January 2007. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Rochdale with an extended lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated in 2086. Given that there were 60 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including fees.
<h5>Rochdale case:</h5>
<p>
In 2014 we were approached by Dr Kian Bennett who, having was assigned a lease of a first floor apartment in Rochdale in March 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar homes in Rochdale with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed in 2106. Having 80 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
</div>