Main reasons to commence your Twickenham lease extension

Why you should start your Twickenham lease extension today:

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

Unfortunately 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.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Twickenham will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to 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 is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not issue a mortgage with a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Twickenham?

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 lawyer we work with provide it.

Twickenham Lease Extension Example Cases:

Oscar, Twickenham, South West London

In recent months Oscar, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Twickenham. In buying his home two decades ago, the length of the lease was of no bearing. Thankfully, he realised he needed to take steps soon on a lease extension. Oscar was able to extend his lease at the eleventh hour last June. Oscar and the landlord eventually settled on sum of £6,000 . If the lease had gone to less than eighty years, the figure would have escalated by at least £975.

Twickenham case:

Last Summer we were contacted by Dr J Michel , who completed a first floor apartment in Twickenham in May 2011. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar premises in Twickenham with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended in 2077. Given that there were 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.