Main reasons to start your Romney lease extension

Why you should start your Romney lease extension today:

Increase your lease and increase your Romney property value

The only way is down when it comes to Romney lease terms. Romney properties that have a remaining term less than than 80 years will drop in value at a rapid rate, and the cost to extend your lease will increase.

Romney property with a lease extension is almost the same value as a freehold

Leasehold properties in Romney with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to issue a mortgage with a short lease

Many mortgage lenders require a lengthy amount of time remaining on a leasehold residence before they will consider lending on it. Regardless of whether you need a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they can't obtain a mortgage, then the market price of the property could be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our Romney lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.

Romney Lease Extension Case Studies:

Leo, Romney, Kent

In 2014 Leo, started to get close to the 80-year threshold with the lease on his ground floor apartment in Romney. In buying his flat two decades ago, the length of the lease was of minimal relevance. Thankfully, he realised he needed to take steps soon on a lease extension. Leo arranged for a lease extension just under the wire last March. Leo and the freeholder via the management company in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £975.

Romney case:

Last Autumn we were approach by Dr B Anderson , who acquired a recently refurbished apartment in Romney in May 2002. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative homes in Romney with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2080. Considering the 54 years left we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of fees.

Romney case:

Mr and Mrs. W Bailey was assigned a lease of a one bedroom flat in Romney in March 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Romney with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected yearly. The lease lapsed on 24 August 2100. Having 74 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.