There is no doubt about it a leasehold property in Romford is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Romford will qualify for this right; however a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Romford with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Romford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Romford valuers.
Twenty four months ago Hugo, started to get close to the eighty-year threshold with the lease on his leasehold flat in Romford. In buying his flat 19 years previously, the unexpired term was of little importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Hugo extended the lease just ahead of time last June. Hugo and the landlord ultimately settled on sum of £6,000 . If the lease had slid below 80 years, the premium would have gone up by a minimum £850.
Last Spring we were phoned by Mr and Mrs. I François , who acquired a purpose-built flat in Romford in June 1995. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable properties in Romford with 100 year plus lease were valued around £216,000. The average amount of ground rent was £60 invoiced per annum. The lease expired on 18 August 2084. Having 58 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.