The re-sale value of a leasehold property in Romsey is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year cut off point. Statute entitles Romsey qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Romsey with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service gives you better control over the value of your Romsey leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the freeholder of her garden flat in Romsey, Emma initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction completed in May 2005. The landlord’s charges were negotiated to under 450 pounds.
Last Winter we were e-mailed by Ms B Reed , who took over the lease of a studio flat in Romsey in August 1999. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Romsey with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2095. Having 70 years left we calculated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 plus costs.
In 2010 we were phoned by Dr S White who, having acquired a ground floor apartment in Romsey in August 2003. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable properties in Romsey with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed in 2075. Taking into account 50 years unexpired we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including fees.