On the balance of probabilities if you own a flat in Rochdale you actually own a long leasehold interest over your property
Leasehold premises in Rochdale with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Rochdale,the lease extension solicitors that we work with will always be willing 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.
In 2014 Finn, came critically near to the eighty-year threshold with the lease on his basement flat in Rochdale. In buying his flat two decades ago, the lease term was of minimal concern. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Finn extended the lease just under the wire last June. Finn and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If the lease had dropped below 80 years, the price would have become more costly by a minimum £1,150.
In 2013 we were contacted by Mr T Mercier who, having acquired a recently refurbished apartment in Rochdale in April 2010. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable premises in Rochdale with a long lease were worth £240,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired in 2088. Considering the 62 years left we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including professional charges.
Dr F Rivera completed a garden apartment in Rochdale in August 2003. The question was if we could estimate the price could be to prolong the lease by 90 years. Identical flats in Rochdale with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 billed quarterly. The lease expiry date was on 22 October 2077. Considering the 51 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.