Why you should start your Romford lease extension

Main reasons to commence your Romford lease extension today:

Increase your lease and increase your Romford property value

When it comes to long leasehold premises in Romford, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Romford with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant statute the landlord can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Romford property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.

Mortgage lenders may not issue a mortgage on a short lease

Most high street banks are making their criteria more stringent and many now require flats to have a minimum of 60 if not 70 years left at the end of the mortgage. As many flats in Romford were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they if they are to be mortgageable.

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

The conveyancers that we work with procure Romford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Romford Lease Extension Example Cases:

Georgina, Romford, Essex,

After lengthy discussions with the freeholder of her garden flat in Romford, Georgina commenced the lease extension process just as her lease was approaching the critical 80-year mark. The transaction was concluded in March 2012. The freeholder’s fees were kept to an absolute minimum.

Romford case:

In 2012 we were e-mailed by Dr K Bertrand who, having bought a one bedroom flat in Romford in October 1996. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Romford with a long lease were worth £243,000. The average amount of ground rent was £65 invoiced per annum. The lease concluded in 2089. Having 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.