Top reasons for Romsley lease extension

Main reasons to commence your Romsley lease extension today:

Increase your lease and increase your Romsley property value

When it comes to residential leasehold property in Romsley, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Residents in Romsley with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has under 80 years left, under the relevant Act the landlord can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

Romsley property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Romsley with in excess of 100 years outstanding on the lease are sometimes 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 buying the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not lend on a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Romsley?

The conveyancers that we work with procure Romsley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Romsley Lease Extension Example Cases:

Abbie, Romsley, Worcestershire,

Following protracted discussions with the freeholder of her two bedroom flat in Romsley, Abbie initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction completed in November 2005. The freeholder’s charges were restricted to about 600 pounds.

Romsley case:

Last Autumn we were called by Ms Jade Jackson , who moved into a one bedroom apartment in Romsley in February 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Romsley with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired on 25 March 2081. Considering the 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.

Romsley case:

Mr and Mrs. O Cook acquired a purpose-built apartment in Romsley in June 2005. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Romsley with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected every twelve months. The lease expired in 2092. Given that there were 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.