The market value of a leasehold property in Romford depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year mark. Statute enables Romford qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Romford with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
Lease extensions in Romford can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Romford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her two bedroom flat in Romford, Kelsey initiated the lease extension process as the eighty year threshold was rapidly nearing. The transaction was finalised in March 2012. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. C Brooks was assigned a lease of a garden flat in Romford in June 2003. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical residencies in Romford with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 billed every twelve months. The lease elapsed on 27 February 2097. Having 71 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension decision for a Romford property 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 related to 1 flat. The unexpired term as at the valuation date was 57.5 years.