Richmond Upon Thames leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Richmond Upon Thames tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Richmond Upon Thames you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Richmond Upon Thames flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Richmond Upon Thames with over 100 years outstanding 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining 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 terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her basement flat in Richmond Upon Thames, Mia commenced the lease extension process as the eighty year deadline was fast approaching. The legal work was finalised in January 2012. The landlord’s charges were restricted to slightly above 500 pounds.
Last Autumn we were phoned by Mr and Mrs. E Reed , who completed a one bedroom apartment in Richmond Upon Thames in April 2002. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparable properties in Richmond Upon Thames with a long lease were valued about £201,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish on 20 August 2082. Taking into account 56 years unexpired we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
In 2013 we were e-mailed by Ms Y David who, having was assigned a lease of a ground floor apartment in Richmond Upon Thames in July 2007. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative properties in Richmond Upon Thames with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated on 10 April 2102. Given that there were 76 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.