There is no doubt about it a leasehold flat or house in Romford is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 125 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Romford will qualify for this right; that being said a conveyancer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Romford can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 dealing with Romford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Ryan, started to get close to the 80-year mark with the lease on his first floor apartment in Romford. In buying his flat 19 years previously, the unexpired term was of minimal importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Ryan extended the lease just in the nick of time in April. Ryan and the landlord eventually agreed on an amount of £5,000 . If the lease had dropped below eighty years, the sum would have increased by at least £900.
In 2014 we were phoned by Mr and Mrs. L Nelson who, having took over the lease of a garden flat in Romford in July 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Romford with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected yearly. The lease termination date was on 2 January 2099. Having 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
An example of a Lease Extension case for a Romford premises 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 was 57.5 years.