For those whose Romney property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Skipton Building Society |
Lease extensions in Romney can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Romney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron owned a 2 bedroom apartment in Romney being marketed with a lease of just over sixty years unexpired. Aaron informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. K Roux completed a ground floor apartment in Romney in March 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Romney with a long lease were worth £260,200. The mid-range ground rent payable was £65 billed per annum. The lease expired on 9 February 2092. Given that there were 66 years unexpired we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus costs.
Mr and Mrs. U Rodríguez completed a ground floor apartment in Romney in September 2002. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Similar premises in Romney with an extended lease were worth £198,800. The average ground rent payable was £55 invoiced monthly. The lease ended on 7 June 2081. Given that there were 55 years remaining we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.