Unfortunately that a Romford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Romford property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Romford will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Romford with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you increased control over the value of your Romford leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Harrison, came critically near to the 80-year threshold with the lease on his purpose- built flat in Romford. In buying his home two decades ago, the lease term was of no bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Harrison extended the lease just under the wire in April. Harrison and the freeholder via the management company in the end agreed on sum of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,075.
Last Christmas we were called by Mr and Mrs. G Mitchell , who moved into a ground floor apartment in Romford in July 2000. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparable properties in Romford with a long lease were valued about £208,600. The average ground rent payable was £60 billed annually. The lease lapsed on 14 May 2082. Considering the 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.
An example of a Lease Extension case 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 related to 1 flat. The unexpired lease term was 57.5 years.