The market value of Richmond Upon Thames leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than eighty years
Leasehold premises in Richmond Upon Thames with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Richmond Upon Thames 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 conveyancing solicitor we work with provide it.
Half a year ago Elijah, came precariously near to the eighty-year threshold with the lease on his first floor flat in Richmond Upon Thames. In buying his flat 19 years previously, the lease term was of minimal relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Elijah extended the lease at the eleventh hour last September. Elijah and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had slid to less than eighty years, the price would have increased by at least £1,075.
Mr and Mrs. P Jackson was assigned a lease of a garden flat in Richmond Upon Thames in November 2000. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative homes in Richmond Upon Thames with a long lease were valued about £213,600. The mid-range ground rent payable was £60 collected quarterly. The lease concluded on 7 March 2082. Considering the 57 years left we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
In 2010 we were e-mailed by Mr and Mrs. L Stewart who, having acquired a garden apartment in Richmond Upon Thames in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Richmond Upon Thames with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced annually. The lease termination date was in 2102. Having 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.