Why you should commence your Romsey lease extension

Main reasons to start your Romsey lease extension today:

A Romsey leasehold property depreciates with the years remaining on the lease.

On the balance of probabilities where you own a flat in Romsey you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may not loan monies on a short lease

The propensity since 2008 has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Romsey lease extension solicitors or enfranchisement solicitors

Using our service gives you better control over the value of your Romsey leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Romsey Lease Extension Example Cases:

Jonathan, Romsey, Hampshire,

Jonathan was the the leasehold proprietor of a 2 bedroom apartment in Romsey being marketed with a lease of a few days over 72 years remaining. Jonathan informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

Romsey case:

Mr and Mrs. S Nelson moved into a newly refurbished flat in Romsey in January 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Romsey with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish on 12 August 2082. Taking into account 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of costs.

Romsey case:

Last year we were contacted by Mr and Mrs. D Roberts , who owned a one bedroom flat in Romsey in June 2010. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical homes in Romsey with a long lease were valued about £242,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired on 18 July 2093. Considering the 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus expenses.