For those whose Richmond Upon Thames property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in Richmond Upon Thames with in excess of 100 years remaining on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective 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 experience and the close ties they enjoy with Richmond Upon Thames valuers.
In recent months Logan, came critically close to the 80-year threshold with the lease on his first floor flat in Richmond Upon Thames. Having bought his property 18 years previously, the lease term was of no relevance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Logan extended the lease at the eleventh hour in August. Logan and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had fallen lower than eighty years, the sum would have increased by at least £950.
Mr and Mrs. B Johnson moved into a first floor flat in Richmond Upon Thames in March 2004. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Richmond Upon Thames with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish in 2101. Having 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Mr and Mrs. D Phillips moved into a first floor apartment in Richmond Upon Thames in October 2001. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Richmond Upon Thames with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected quarterly. The lease elapsed in 2090. Having 65 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.