Romsey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Romsey residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Romsey you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Romsey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Romsey valuers.
After unsuccessful negotiations with the landlord of her basement flat in Romsey, Kayleigh initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work was concluded in July 2009. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Ms I Fournier , who moved into a studio apartment in Romsey in January 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Romsey with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 invoiced annually. The lease end date was in 2106. Considering the 80 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.
In 2014 we were contacted by Mrs Bethan Cox who, having owned a newly refurbished flat in Romsey in May 2006. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Romsey with an extended lease were worth £200,800. The average amount of ground rent was £65 invoiced yearly. The lease expiry date was in 2086. Given that there were 60 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus professional charges.