Romford leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher premium will be payable. Flat owners in Romford will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Romford with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Romford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her first floor flat in Romford, Louise started the lease extension process as the eighty year threshold was quickly nearing. The legal work completed in September 2011. The freeholder’s fees were restricted to a tad over 450 GBP.
Dr R Ali purchased a purpose-built apartment in Romford in April 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative residencies in Romford with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2096. Taking into account 70 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
An example of a Lease Extension decision 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 residue of the current lease was 57.5 years.