Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Romsey. Clearly, the term of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the property has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Romsey have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before delaying your Romsey lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Romsey with in excess of 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Using our service will provide you increased control over the value of your Romsey leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Rory was the the leasehold proprietor of a 2 bedroom flat in Romsey being marketed with a lease of just over 72 years left. Rory on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Rory to exercise his statutory right. Rory obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr G Evans moved into a garden apartment in Romsey in August 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical properties in Romsey with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed in 2101. Given that there were 75 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. R Bonnet who, having owned a garden flat in Romsey in March 2012. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Romsey with an extended lease were valued around £173,800. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 21 April 2081. Considering the 55 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.