Romiley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Romiley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Romiley you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Romiley leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Romiley with over 100 years unexpired on the lease are often referred to as ‘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 warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Romiley,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 experience and the close ties they enjoy with Romiley valuers.
Callum was the the leasehold owner of a studio apartment in Romiley on the market with a lease of fraction over 59 years remaining. Callum informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Autumn we were approach by Mr Austin Morgan , who purchased a purpose-built flat in Romiley in May 2004. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical premises in Romiley with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected quarterly. The lease ran out on 10 August 2089. Considering the 64 years remaining we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 plus costs.
Last Winter we were called by Mr S Khan , who completed a one bedroom flat in Romiley in January 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Romiley with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ended in 2100. Considering the 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.