For anyone whose New Romney flat is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in New Romney can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with New Romney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Benjamin, started to get near to the 80-year mark with the lease on his purpose- built apartment in New Romney. In buying his home twenty years previously, the unexpired term was of little bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Benjamin arranged for a lease extension just in the nick of time last April. Benjamin and the freeholder eventually agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have escalated by at least £1,125.
In 2014 we were approached by Mr and Mrs. W Torres who, having was assigned a lease of a one bedroom flat in New Romney in June 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in New Romney with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 collected quarterly. The lease terminated in 2092. Given that there were 67 years outstanding we estimated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including expenses.
In 2009 we were approached by Mrs Laura Walker who, having owned a first floor apartment in New Romney in May 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar properties in New Romney with 100 year plus lease were in the region of £206,200. The average ground rent payable was £55 collected per annum. The lease finished on 1 February 2081. Having 56 years remaining we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.