Main reasons to commence your New Romney lease extension

Top reasons for lease extension now:

A New Romney lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in New Romney, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in New Romney with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold premises in New Romney with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not issue a mortgage on a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A buyer will likely find it difficult to obtain a mortgage and this could result in your New Romney property being difficult to sell or to obtain finance on.

Why use us for your lease extension in New Romney?

Regardless of whether you are a tenant or a landlord in New Romney,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Romney valuers.

New Romney Lease Extension Case Summaries:

Isabella, New Romney, Kent,

Following unsuccessful negotiations with the freeholder of her one bedroom apartment in New Romney, Isabella initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The lease extension was finalised in June 2009. The freeholder’s fees were negotiated to a tad over 500 GBP.

New Romney case:

In 2011 we were approached by Ms D Ramírez who, having owned a basement apartment in New Romney in October 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in New Romney with an extended lease were in the region of £257,800. The average amount of ground rent was £65 invoiced per annum. The lease elapsed on 17 February 2091. Considering the 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus professional charges.

New Romney case:

In 2009 we were approached by Mr and Mrs. E André who, having completed a purpose-built flat in New Romney in October 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in New Romney with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish in 2080. Considering the 54 years left we approximated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 plus expenses.