Why you should commence your Romford lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/romford">Romford</a> leasehold property depreciates with the years remaining on the lease.
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<p> With a domestic leasehold premises in Romford, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Romford with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the current Act the freeholder can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable. <h4>Romford property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
<h4>Lenders may decide not to grant a mortgage with a short lease</h4> The definition of a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties as and when you come to sell or remortgage your flat as it will be effectively unmortgageable. Even though you may not have an immediate plan to sell but when you do your buyer will have to hold off for a couple of years before being able to exercise the right to a an extension to the lease.
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<tr><th>Lender</th>
<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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Why use us for your lease extension in Romford? </h4>
<p> Using our service gives you increased control over the value of your Romford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Romford Lease Extension Example Cases:
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<h5> Harvey, Romford, Essex</h5>
<p> Half a year ago Harvey, came precariously near to the 80-year mark with the lease on his ground floor flat in Romford. In buying his property twenty years previously, the length of the lease was of no interest. Thankfully, he noticed he needed to take action soon on a lease extension. Harvey was able to extend his lease just ahead of time last May. Harvey and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If he not met the deadline, the amount would have increased by a minimum £850.
<h5>Romford case:</h5>
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Last Autumn we were called by Mrs U Mitchell , who
was assigned a lease of a purpose-built apartment in Romford in May 2002. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical homes in Romford with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended in 2103. Having 77 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
<div> <h5>Decision in Havering</h5>
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An example of a Lease Extension case for a Romford residence 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 affected 1 flat. The unexpired term as at the valuation date was 57.5 years.
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