Why you should start your Romney lease extension

Top reasons for lease extension now:

A Romney leasehold property depreciates with the years remaining on the lease.

Romney leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Romney residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Romney you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Romney flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay

Romney property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Romney with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not finance a property with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are regarded as insufficient for lending purposes.

Get in touch with one of our Romney lease extension solicitors or enfranchisement solicitors

Lease extensions in Romney can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.

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.

Romney Lease Extension Example Cases:

Ali, Romney, Kent,

Ali owned a high value apartment in Romney on the market with a lease of a little over sixty years outstanding. Ali informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.

Romney case:

Mr J Peterson acquired a studio apartment in Romney in April 2002. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Romney with a long lease were worth £280,000. The average ground rent payable was £45 collected monthly. The lease expiry date was in 2096. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.

Romney case:

Mr and Mrs. V Edwards completed a purpose-built apartment in Romney in May 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar properties in Romney with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed in 2085. Taking into account 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of costs.