With a domestic leasehold premises in Egham, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Residents in Egham with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Egham leasehold, as your property will be more valuable and saleable in relation to the 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.
Freddie was the the leasehold proprietor of a studio flat in Egham on the market with a lease of just over 72 years outstanding. Freddie informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Mr and Mrs. B Girard completed a garden apartment in Egham in November 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Egham with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease termination date was in 2077. Given that there were 51 years remaining we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Egham flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired residue of the current lease was 82.93 years.