Why you should start your Teddington lease extension

Main reasons to start your Teddington lease extension today:

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

When it comes to long leasehold premises in Teddington, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Teddington with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years left, under the current legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to finance a property on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Teddington lease extensions?

Lease extensions in Teddington can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Teddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Teddington Lease Extension Case Summaries:

Ryan, Teddington, South West London,

Ryan was the the leasehold owner of a studio apartment in Teddington being sold with a lease of a few days over 59 years remaining. Ryan informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.

Teddington case:

Mr and Mrs. L Gunderson was assigned a lease of a first floor apartment in Teddington in March 1995. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative flats in Teddington with an extended lease were valued around £210,000. The mid-range amount of ground rent was £50 billed yearly. The lease lapsed on 3 February 2106. Having 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.