Romiley leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Romiley will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Romiley with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Romiley 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 lawyer we work with provide it.
Last October Jamie, came perilously close to the 80-year mark with the lease on his ground floor flat in Romiley. Having purchased his property two decades ago, the lease term was of minimal relevance. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Jamie was able to extend his lease just under the wire in July. Jamie and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,050.
In 2009 we were approached by Mr and Mrs. H Davis who, having took over the lease of a first floor flat in Romiley in January 2006. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable flats in Romiley with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished in 2101. Given that there were 76 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Mr and Mrs. O Bennett owned a ground floor flat in Romiley in March 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Romiley with a long lease were worth £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease finished in 2081. Taking into account 56 years left we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus expenses.