Why you should commence your Teddington lease extension

Main reasons to commence your Teddington lease extension today:

A Teddington leasehold property depreciates with the years remaining on the lease.

It’s a harsh truth that a Teddington residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Teddington property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Teddington will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Teddington with in excess of 100 years remaining on the lease are sometimes referred to as ‘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 upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may not finance a property on a short lease

Banks and building societies are tightening their criteria and many now require flats to have a minimum of sixty if not seventy years left once the mortgage has expired. As many flats in Teddington were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

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

Regardless of whether you are a tenant or a landlord in Teddington,the lease extension experts 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 Teddington valuers.

Teddington Lease Extension Example Cases:

Rachel, Teddington, South West London,

Trailing lengthy correspondence with the landlord of her studio flat in Teddington, Rachel commenced the lease extension process as the 80 year mark was rapidly coming. The legal work was concluded in June 2012. The freeholder’s fees were kept to an absolute minimum.

Teddington case:

In 2012 we were e-mailed by Dr Isabel Phillips who, having completed a garden flat in Teddington in November 1996. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Teddington with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated on 9 January 2099. Taking into account 73 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.