Main reasons to commence your Teddington lease extension

Main reasons to start your Teddington lease extension today:

A Teddington lease depreciates with the years remaining on the lease.

Unfortunately that a Teddington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Teddington property prices.Where your lease has approximately ninety years left, you need to start considering 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 slips below 80 years - otherwise a higher premium will be payable. Most flat owners in Teddington will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.

Teddington property with a lease extension has roughly the same value as a freehold

Leasehold premises in Teddington with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies may not loan monies on a short lease

Almost all banks and building societies insist on a lengthy amount of time left on a leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should be mindful that it is likely that someone intending to purchase your property in the future might well do, so where they can't obtain a mortgage, then the value of your property will likely be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are prepared to accept

Get in touch with one of our Teddington lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Teddington 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 conveyancing solicitor we work with provide it.

Teddington Lease Extension Case Summaries:

Isobel, Teddington, South West London,

Following unsuccessful negotiations with the landlord of her garden apartment in Teddington, Isobel started the lease extension process as the 80 year threshold was fast coming. The lease extension was finalised in June 2013. The landlord’s charges were restricted to a tad over 600 pounds.

Teddington case:

In 2011 we were called by Dr G Hernández who, having completed a basement flat in Teddington in June 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Teddington with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected monthly. The lease finished on 13 October 2076. Having 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.