The market value of Romsey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than 80 years
Leasehold premises in Romsey with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better control over the value of your Romsey leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Tyler, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Romsey. In buying his property twenty years ago, the lease term was of little bearing. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Tyler was able to extend his lease just ahead of time last September. Tyler and the freeholder ultimately settled on an amount of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £950.
Last Summer we were contacted by Mrs Amelia Williams , who owned a basement flat in Romsey in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Romsey with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease concluded in 2076. Given that there were 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus fees.
In 2011 we were e-mailed by Mrs Bethany Wood who, having acquired a studio apartment in Romsey in July 2001. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable flats in Romsey with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease finished in 2087. Considering the 62 years remaining we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.