Why you should commence your Twickenham lease extension

Top reasons for lease extension now:

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

When it comes to residential leasehold premises in Twickenham, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Anyone in Twickenham with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.

Lenders will not finance a property on a short lease

Lending institutions have set criteria when loaning monies secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term goes lower than a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Twickenham property.

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

Retaining our service gives you enhanced control over the value of your Twickenham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Twickenham Lease Extension Example Cases:

Oscar, Twickenham, South West London,

Oscar owned a 2 bedroom apartment in Twickenham on the market with a lease of a few days over 59 years left. Oscar 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 freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

Twickenham case:

In 2012 we were phoned by Dr Jamie Rose who, having purchased a garden flat in Twickenham in April 2000. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar premises in Twickenham with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2090. Having 64 years outstanding we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 not including professional charges.