As the the remaining lease term of a Teddington residential lease lessens so does its value and therefore the value of your property. If the residual term has, beyond 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Teddington will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Teddington with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| 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. |
The lawyers that we work with procure Teddington 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.
Trailing unsuccessful correspondence with the landlord of her two bedroom flat in Teddington, Ellie initiated the lease extension process as the 80 year mark was quickly approaching. The transaction completed in March 2010. The landlord’s fees were negotiated to under 500 pounds.
Mr and Mrs. K King bought a garden flat in Teddington in March 2000. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparative homes in Teddington with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 11 April 2083. Given that there were 57 years outstanding we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Teddington property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.