The only way is down when it comes to New Romney lease terms. New Romney leaseholds that have a remaining term less than than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies in New Romney with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Lease extensions in New Romney can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 procuring 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.
Half a year ago Seth, came precariously close to the 80-year mark with the lease on his studio flat in New Romney. Having purchased his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Seth was able to extend his lease just ahead of time last April. Seth and the freeholder subsequently settled on a premium of £5,000 . If the lease had descended below 80 years, the price would have escalated by at least £1,025.
Last Christmas we were e-mailed by Mr and Mrs. J Michel , who took over the lease of a first floor apartment in New Romney in October 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in New Romney with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out on 6 January 2087. Considering the 61 years left we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.
In 2014 we were phoned by Mr Alex Bailey who, having acquired a basement apartment in New Romney in March 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in New Romney with 100 year plus lease were valued around £166,800. The mid-range amount of ground rent was £55 collected annually. The lease elapsed on 8 August 2076. Taking into account 50 years as a residual term we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of legals.