With a long leasehold property in Romiley, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Romiley with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years left, under the current Act the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Romiley can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 procuring Romiley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy was the the leasehold proprietor of a 2 bedroom flat in Romiley being marketed with a lease of a little over fifty eight years unexpired. Tommy on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last month we were phoned by Dr Isaac Rose , who owned a one bedroom flat in Romiley in May 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Romiley with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 invoiced monthly. The lease ended on 11 September 2080. Taking into account 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.
In 2012 we were approached by Dr U James who, having took over the lease of a ground floor apartment in Romiley in November 2008. 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. Identical properties in Romiley with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed in 2091. Given that there were 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.