Rochdale leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Rochdale will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Rochdale with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Rochdale leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kyle, came precariously close to the 80-year mark with the lease on his ground floor apartment in Rochdale. In buying his home two decades ago, the lease term was of little bearing. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Kyle arranged for a lease extension just ahead of time in January. Kyle and the freeholder in the end settled on a premium of £6,000 . If the lease had dropped lower than eighty years, the sum would have gone up by a minimum £950.
In 2014 we were phoned by Mr G Baker who, having completed a first floor flat in Rochdale in February 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Rochdale with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease finished in 2090. Given that there were 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.
Dr Madeleine Leroy owned a basement apartment in Rochdale in March 1995. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Rochdale with a long lease were valued about £189,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease finished on 2 May 2079. Taking into account 53 years remaining we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.