Romney leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Romney will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Romney with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Romney,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Romney valuers.
Trailing protracted negotiations with the freeholder of her garden flat in Romney, Rachel started the lease extension process as the 80 year threshold was quickly coming. The legal work was concluded in September 2005. The freeholder’s charges were negotiated to below 650 pounds.
Ms Nicole Brooks purchased a first floor apartment in Romney in February 2002. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative premises in Romney with a long lease were valued around £181,600. The average ground rent payable was £55 invoiced per annum. The lease ran out on 6 July 2077. Having 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.
Mr and Mrs. S Allen was assigned a lease of a basement apartment in Romney in July 2009. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Romney with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced annually. The lease ran out on 10 January 2097. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.