Top reasons for Richmond Upon Thames lease extension

Main reasons to start your Richmond Upon Thames lease extension today:

A Richmond Upon Thames leasehold property depreciates with the years remaining on the lease.

With a residential leasehold property in Richmond Upon Thames, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Richmond Upon Thames with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has fewer than 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not finance a property on a short lease

Lending institutions have specific criteria when lending monies charged on leasehold property. Some will simply not lend at all once the residual lease term slips under a certain unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Richmond Upon Thames home.

What makes us experts in Richmond Upon Thames lease extensions?

Regardless of whether you are a tenant or a landlord in Richmond Upon Thames,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Richmond Upon Thames valuers.

Richmond Upon Thames Lease Extension Example Cases:

Eleanor, Richmond Upon Thames, South West London,

Trailing lengthy negotiations with the freeholder of her garden apartment in Richmond Upon Thames, Eleanor started the lease extension process as the eighty year threshold was swiftly nearing. The legal work was concluded in May 2013. The freeholder’s costs were kept to an absolute minimum.

Richmond Upon Thames case:

Last year we were approach by Mrs I Lambert , who moved into a one bedroom apartment in Richmond Upon Thames in October 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Richmond Upon Thames with 100 year plus lease were worth £225,800. The average ground rent payable was £60 invoiced monthly. The lease lapsed in 2086. Taking into account 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £25,700 and £29,600 exclusive of fees.

Richmond Upon Thames case:

In 2014 we were phoned by Dr N Campbell who, having completed a first floor flat in Richmond Upon Thames in October 2012. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Richmond Upon Thames with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish on 18 November 2106. Given that there were 80 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.