Top reasons for Twickenham lease extension

Top reasons for lease extension now:

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

It’s a harsh truth that a Twickenham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. 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 Twickenham property prices.Where your lease has approximately 90 years left, you need to start thinking about 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 under eighty years - otherwise a higher premium will be due. Most flat owners in Twickenham will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

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

Leasehold properties in Twickenham with more than one hundred years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

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

Nearly all mortgage lenders will not grant a mortgage on a lease with under 70 years unexpired - although this varies from lender to lender. A purchaser will no doubt encounter difficulties to obtain a mortgage and this will result in your Twickenham property becoming difficult to sell or to obtain finance on.

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

The conveyancing solicitors that we work with undertake Twickenham 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.

Twickenham Lease Extension Example Cases:

Blake, Twickenham, South West London,

Blake was the the leasehold owner of a high value flat in Twickenham on the market with a lease of a little over sixty years remaining. Blake on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and secured an acceptable deal informally and sell the flat.

Twickenham case:

In 2014 we were e-mailed by Mr and Mrs. G Mason who, having moved into a basement flat in Twickenham in August 1995. We are asked if we could estimate the price could be for a 90 year lease extension. Identical residencies in Twickenham with an extended lease were worth £275,000. The mid-range ground rent payable was £65 billed per annum. The lease ran out in 2094. Having 68 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.