Stop! Your Lease Extension in Romford Could Be FREE

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Many leaseholders in Romford are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Romford has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Romford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Romford property value

The market value of a leasehold property in Romford depends on how many years the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be finalised prior to the eighty year threshold. Statute entitles Romford qualifying lessees to an additional term of ninety years over and above the unexpired term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not finance a property on a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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.

Get in touch with one of our Romford lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Romford,the lease extension solicitors that we work with will always be willing 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.

Romford Lease Extension Example Cases:

Victoria, Romford, Essex,

Following unsuccessful discussions with the freeholder of her garden apartment in Romford, Victoria initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension was concluded in January 2006. The freeholder’s costs were restricted to a tad over 550 GBP.

Romford case:

In 2012 we were approached by Ms A Lefèvre who, having took over the lease of a first floor apartment in Romford in October 1995. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative homes in Romford with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2104. Taking into account 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.

Decision in Havering

An example of a Lease Extension decision for a Romford residence 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 affected 1 flat. The unexpired term as at the valuation date was 57.5 years.