When it comes to residential leasehold property in New Romney, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Residents in New Romney with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the current statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in New Romney with in excess of 100 years left 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your New Romney leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Kian, came seriously near to the eighty-year mark with the lease on his leasehold flat in New Romney. In buying his property 18 years previously, the lease term was of minimal relevance. As luck would have it, he noticed he would soon be paying way over the odds for Extending the lease. Kian arranged for a lease extension at the eleventh hour in May. Kian and the freeholder via the management company ultimately settled on an amount of £5,000 . If he not met the deadline, the sum would have become more costly by a minimum £1,150.
In 2010 we were e-mailed by Mr Gabriel Thompson who, having completed a first floor apartment in New Romney in April 2012. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable properties in New Romney with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2080. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of legals.
Mr Blake Kelly completed a garden apartment in New Romney in November 2006. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparable homes in New Romney with a long lease were worth £295,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish in 2100. Having 75 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.