Romiley leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Flat owners in Romiley will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
Engaging our service will provide you better control over the value of your Romiley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Tommy, came very near to the 80-year mark with the lease on his leasehold apartment in Romiley. Having bought his flat 18 years ago, the unexpired term was of little significance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Tommy extended the lease just under the wire last August. Tommy and the landlord eventually agreed on sum of £5,500 . If he had missed the deadline, the sum would have escalated by at least £1,150.
Last year we were contacted by Mr and Mrs. B Bailey , who purchased a newly refurbished flat in Romiley in September 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Romiley with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish on 1 September 2103. Taking into account 77 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
Mr Ibrahim Alexander was assigned a lease of a purpose-built apartment in Romiley in April 1998. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Romiley with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 billed annually. The lease terminated on 9 June 2083. Having 57 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.