Romsey leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Romsey will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Romsey with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Romsey leasehold, as your property will be more valuable and marketable in relation to the 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.
Last October Nathan, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Romsey. Having purchased his flat two decades ago, the unexpired term was of minimal bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Nathan arranged for a lease extension just under the wire in August. Nathan and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had slid to less than 80 years, the price would have gone up by a minimum £1,075.
Last Summer we were phoned by Mrs H Petit , who owned a garden apartment in Romsey in October 1997. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Romsey with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 billed annually. The lease elapsed in 2087. Taking into account 61 years left we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.
Mr and Mrs. M Bennett owned a basement flat in Romsey in April 2004. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Romsey with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed yearly. The lease ran out on 22 October 2098. Considering the 72 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.