When it comes to domestic leasehold premises in Romney, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Romney with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has fewer than eighty years left, under the relevant statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Romney with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Romney,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Romney valuers.
Alex owned a 2 bedroom flat in Romney on the market with a lease of a little over 59 years unexpired. Alex informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr V Ali completed a purpose-built flat in Romney in November 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Romney with an extended lease were valued about £285,000. The average amount of ground rent was £45 invoiced annually. The lease concluded on 4 August 2096. Considering the 71 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Mr and Mrs. H Norbert moved into a purpose-built apartment in Romney in November 2012. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Romney with 100 year plus lease were valued about £225,800. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2085. Having 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including legals.