Main reasons to commence your Romford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Romford property value

When it comes to domestic leasehold property in Romford, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Romford with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years left, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lenders may decide not to lend on a short lease

Nearly all mortgage lenders insist on a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Even if you don't require a mortgage, you should be mindful that it is probable that someone wishing to purchase your property in the future might well do, so if they can't obtain a mortgage, then the market price of the property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to lend on

Why use us for your lease extension in Romford?

Irrespective of whether you are a tenant or a freeholder in Romford,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 Romford valuers.

Romford Lease Extension Example Cases:

Blake, Romford, Essex,

Blake was the the leasehold owner of a high value flat in Romford on the market with a lease of fraction over 61 years remaining. Blake on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.

Romford case:

Mr Felix Peterson purchased a one bedroom apartment in Romford in February 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar flats in Romford with 100 year plus lease were valued about £267,600. The average amount of ground rent was £65 invoiced monthly. The lease ended on 26 October 2093. Considering the 67 years left we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 not including costs.