The only way is down when it comes to Romney lease terms. Romney leaseholds that have a residual term fewer than eighty years will de-escalate in value even faster, and the cost to extend your lease will increase.
Leasehold premises in Romney with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake 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.
Lucas was the the leasehold proprietor of a high value apartment in Romney being marketed with a lease of a few days over sixty years remaining. Lucas informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last February we were approach by Dr Luke Mitchell , who bought a garden apartment in Romney in June 2012. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical residencies in Romney with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 billed every twelve months. The lease concluded on 8 October 2084. Considering the 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of costs.
Mrs Amber Bailey purchased a ground floor apartment in Romney in October 1996. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Romney with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded on 28 March 2104. Given that there were 79 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.