Richmond Upon Thames leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Richmond Upon Thames will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with undertake 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.
Connor owned a conversion flat in Richmond Upon Thames on the market with a lease of a little over 59 years left. Connor on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. 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 £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2013 we were approached by Mr and Mrs. I Wright who, having completed a basement apartment in Richmond Upon Thames in June 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Richmond Upon Thames with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2103. Having 78 years left we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 not including legals.
In 2010 we were phoned by Dr W Lee who, having took over the lease of a purpose-built flat in Richmond Upon Thames in August 1996. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar premises in Richmond Upon Thames with an extended lease were in the region of £270,000. The mid-range ground rent payable was £65 billed monthly. The lease terminated in 2093. Taking into account 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.