Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Romsey. Inevitably, the period of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Romsey have the right to extend the lease for an additional ninety years under legislation. Do give due attention before delaying your Romsey lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
Leasehold properties in Romsey with more than one hundred years unexpired 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Romsey,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Romsey valuers.
Theo owned a 2 bedroom apartment in Romsey being marketed with a lease of a few days over 59 years outstanding. Theo informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Summer we were contacted by Mr Ethan Davis , who moved into a one bedroom apartment in Romsey in June 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative residencies in Romsey with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed in 2098. Given that there were 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Christmas we were called by Mr and Mrs. V Gray , who acquired a basement apartment in Romsey in February 1995. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Romsey with 100 year plus lease were worth £261,600. The average ground rent payable was £60 collected yearly. The lease elapsed in 2078. Considering the 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including fees.