There is no doubt about it a leasehold property in Teddington is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years to run then this decrease may be of little impact that being said there will become a point in time 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 increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Teddington will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. 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 premises in Teddington with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Teddington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Teddington valuers.
Two years ago Alexander, started to get close to the 80-year mark with the lease on his ground floor apartment in Teddington. In buying his flat two decades ago, the unexpired term was of little importance. by good luck, he noticed he needed to take steps soon on Extending the lease. Alexander arranged for a lease extension just under the wire in March. Alexander and the landlord in the end agreed on the final figure of £5,500 . If the lease had dropped to less than 80 years, the price would have increased by at least £1,100.
Dr I Harris took over the lease of a studio flat in Teddington in April 2006. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparative residencies in Teddington with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease concluded in 2087. Considering the 61 years remaining we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.
An example of a Lease Extension decision for a Teddington residence 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 affected 1 flat.