Why you should start your Romford lease extension

Why you should start your Romford lease extension today:

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

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Romford. Inevitably, the length of lease left reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Romford have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due consideration before putting off your Romford lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease

Romford property with a lease extension has roughly the same value as a freehold

Leasehold properties in Romford with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lending institutions may decide not to finance a property on a short lease

Banks and building societies do not like short residential leases. You are likely to encounter difficulties where you want to sell your flat in Romford if the remaining lease term is below the criteria set by the majority of mortgage companies. Different mortgage companies have varying criteria but in the main theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Romford?

Lease extensions in Romford can be a difficult process. We recommend you secure 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 in-depth market knowledge 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.

Romford Lease Extension Example Cases:

Hugo, Romford, Essex

In recent months Hugo, came precariously near to the eighty-year mark with the lease on his one bedroom flat in Romford. In buying his home twenty years ago, the length of the lease was of no concern. Thankfully, he recognised he needed to take steps soon on a lease extension. Hugo arranged for a lease extension at the eleventh hour in June. Hugo and the landlord ultimately settled on a premium of £5,000 . If the lease had gone below 80 years, the figure would have increased by at least £925.

Romford case:

Last Autumn we were phoned by Dr Tyler Johnson , who owned a studio apartment in Romford in January 2010. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Romford with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ran out on 17 January 2105. Given that there were 79 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.