It’s an underpublicised truth that a New Romney residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the New Romney property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in New Romney will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Santander | |
| Yorkshire Building Society |
The lawyers that we work with undertake New Romney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
14 months ago Finn, came precariously close to the 80-year mark with the lease on his garden apartment in New Romney. Having purchased his flat two decades ago, the unexpired term was of minimal importance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Finn arranged for a lease extension at the eleventh hour last September. Finn and the landlord ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £900.
Last Summer we were called by Mr and Mrs. L Sánchez , who moved into a recently refurbished apartment in New Romney in June 1996. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar homes in New Romney with 100 year plus lease were valued about £166,800. The average amount of ground rent was £55 billed per annum. The lease came to a finish in 2076. Having 50 years left we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus legals.
Mr Y Sánchez took over the lease of a garden apartment in New Romney in November 1997. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in New Romney with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 14 May 2096. Given that there were 70 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.