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Top reasons for Romford lease extension

Why you should commence 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. your 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 period of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Romford have the right to extend the lease for a further ninety years under statute. Do give careful attention before delaying your Romford lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold properties in Romford with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to issue a mortgage with a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on any leasehold residence before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they can't get a mortgage, then the market price of your property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are prepared to lend on

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Lloyds TSB Scotland Minimum 70 years from the date 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.
Yorkshire Building Society 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.

What makes us experts in Romford lease extensions?

Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Romford valuers.

Romford Lease Extension Example Cases:

Robyn, Romford, Essex,

Off the back of unsuccessful discussions with the freeholder of her ground floor apartment in Romford, Robyn started the lease extension process as the eighty year mark was fast nearing. The transaction was concluded in August 2011. The landlord’s costs were kept to an absolute minimum.

Romford case:

Last Autumn we were contacted by Mr and Mrs. R Rose , who completed a one bedroom apartment in Romford in August 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Romford with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed in 2072. Taking into account 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.

Decision in Havering

An example of a Lease Extension case for a Romford premises 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 residue of the current lease was 57.5 years.