When it comes to long leasehold property in Romsey, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Romsey with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than eighty years left, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Romsey 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Romsey,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Romsey valuers.
Elijah owned a studio apartment in Romsey being sold with a lease of a little over 59 years outstanding. Elijah informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and secured an acceptable deal informally and sell the property.
Last year we were contacted by Mr B Bonnet , who was assigned a lease of a studio apartment in Romsey in June 2008. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical residencies in Romsey with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 billed annually. The lease concluded on 22 October 2091. Taking into account 65 years left we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Dr Ollie Smith bought a basement apartment in Romsey in August 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in Romsey with a long lease were valued around £275,000. The average ground rent payable was £55 collected monthly. The lease end date was on 5 May 2102. Having 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.