The closer a domestic lease in Romford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Romford will qualify for this right; that being said a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Romford with over one hundred years remaining 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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Romford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Romford valuers.
Twenty four months ago Hugo, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Romford. Having bought his flat two decades ago, the length of the lease was of no significance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Hugo arranged for a lease extension just ahead of time last June. Hugo and the landlord eventually agreed on an amount of £6,000 . If the lease had dipped below 80 years, the sum would have escalated by at least £975.
Last month we were approach by Mr Y Rivera , who completed a first floor apartment in Romford in June 1998. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Romford with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 2 April 2092. Having 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.
An example of a Lease Extension case for a Romford flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired lease term was 57.5 years.