Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in New Romney. Clearly, the period of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in New Romney have the right to extend the lease for a further 90 years in accordance with statute. Do give due deliberation before delaying your New Romney lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold residencies in New Romney with in excess of 100 years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| 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. |
Retaining our service gives you better control over the value of your New Romney leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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 the wake of 9 months of lengthy correspondence with the freeholder of her leasehold flat in New Romney, Grace started the lease extension process just as her lease was approaching the critical 80-year mark. The transaction was finalised in July 2007. The landlord’s costs were kept to an absolute minimum.
Dr K Mercier completed a ground floor apartment in New Romney in October 1998. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in New Romney with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 collected yearly. The lease expired in 2098. Having 72 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Ms S González was assigned a lease of a basement flat in New Romney in February 1997. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical homes in New Romney with a long lease were valued around £233,200. The average ground rent payable was £60 billed quarterly. The lease elapsed on 1 February 2087. Having 61 years left we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of fees.