Unfortunately that a Richmond Upon Thames residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Richmond Upon Thames property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Richmond Upon Thames will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Richmond Upon Thames leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Lewis, came dangerously close to the eighty-year threshold with the lease on his ground floor apartment in Richmond Upon Thames. In buying his property two decades ago, the length of the lease was of minimal concern. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Lewis extended the lease just under the wire in May. Lewis and the freeholder subsequently settled on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by at least £1,100.
Last Autumn we were e-mailed by Dr Joshua Morgan , who moved into a first floor apartment in Richmond Upon Thames in June 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Richmond Upon Thames with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ended in 2098. Having 72 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
In 2011 we were approached by Dr V King who, having completed a garden flat in Richmond Upon Thames in February 2010. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable homes in Richmond Upon Thames with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced annually. The lease elapsed in 2087. Given that there were 61 years remaining we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.