Unfortunately that a Richmond Upon Thames residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Richmond Upon Thames property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Richmond Upon Thames will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Richmond Upon Thames with over 100 years left 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| Virgin |
Lease extensions in Richmond Upon Thames can be a difficult process. We recommend you procure guidance 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 Richmond Upon Thames lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her purpose-built apartment in Richmond Upon Thames, Natasha initiated the lease extension process as the 80 year threshold was quickly coming. The legal work completed in March 2005. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were phoned by Mr and Mrs. F Carter who, having owned a one bedroom flat in Richmond Upon Thames in October 2008. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Richmond Upon Thames with 100 year plus lease were worth £252,800. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded on 13 April 2091. Given that there were 65 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
Ms Naomi Hill was assigned a lease of a newly refurbished flat in Richmond Upon Thames in September 2006. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Richmond Upon Thames with an extended lease were valued around £191,400. The average ground rent payable was £55 invoiced quarterly. The lease ran out on 10 August 2080. Given that there were 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus fees.