The only way is down when it comes to Romney lease terms. Romney leaseholds that have a residual term fewer than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will increase.
Leasehold residencies in Romney with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Romney leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix was the the leasehold owner of a conversion apartment in Romney on the market with a lease of just over fifty eight years remaining. Felix on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Ms V Rodríguez owned a newly refurbished flat in Romney in May 2004. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar residencies in Romney with an extended lease were in the region of £233,200. The average amount of ground rent was £60 collected every twelve months. The lease concluded on 11 February 2087. Having 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of costs.
Last year we were contacted by Mr Dylan Baker , who was assigned a lease of a one bedroom flat in Romney in September 2009. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical flats in Romney with a long lease were worth £171,800. The average amount of ground rent was £55 billed yearly. The lease elapsed on 26 May 2076. Taking into account 50 years remaining we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.