Main reasons to commence your Romford lease extension

Why you should start your Romford lease extension today:

A Romford lease depreciates with the years remaining on the lease.

Romford leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Romford will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.

Romford property with a lease extension is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not lend with a short lease

Lenders are tightening their criteria and a meaningful number now want flats to have a minimum of 60 if not 70 years remaining at the expiry of the mortgage. Given that plenty of flats in Romford were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

What makes us experts in Romford lease extensions?

The conveyancing solicitors that we work with undertake Romford 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 conveyancer we work with provide it.

Romford Lease Extension Case Summaries:

Luke, Romford, Essex,

Luke owned a 2 bedroom apartment in Romford being sold with a lease of fraction over 59 years unexpired. Luke on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Romford case:

Last Autumn we were contacted by Dr Muhammad Bernard , who completed a basement apartment in Romford in August 1997. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable premises in Romford with an extended lease were worth £295,000. The mid-range ground rent payable was £50 collected quarterly. The lease finished on 14 July 2101. Considering the 75 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.