Unfortunately that a Richmond Upon Thames residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Richmond Upon Thames property market.Where your lease has approximately 90 years left, you should start thinking about 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 dips 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 conveyancing solicitor should be able to confirm whether you are eligibility. 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 lawyer throughout the process.
Leasehold properties in Richmond Upon Thames with over 100 years remaining 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers 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 lawyer we work with provide it.
In recent months Tyler, came precariously close to the eighty-year threshold with the lease on his ground floor apartment in Richmond Upon Thames. In buying his property 19 years previously, the unexpired term was of little interest. Luckily, he became aware that he needed to take steps soon on a lease extension. Tyler extended the lease at the eleventh hour last June. Tyler and the freeholder subsequently settled on sum of £5,000 . If the lease had slipped lower than 80 years, the price would have increased by a minimum £850.
Last Summer we were e-mailed by Mr and Mrs. W Bell , who completed a first floor flat in Richmond Upon Thames in February 1998. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative residencies in Richmond Upon Thames with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2103. Taking into account 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2012 we were called by Dr Noah Morris who, having bought a basement flat in Richmond Upon Thames in June 2004. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical homes in Richmond Upon Thames with an extended lease were valued around £260,200. The mid-range ground rent payable was £65 invoiced monthly. The lease finished in 2092. Taking into account 66 years as a residual term we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus expenses.