With a domestic leasehold property in Egham, you are in fact renting it for a certain amount of time. In recent years 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 extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Egham with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When the lease term has below 80 years left, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Egham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a studio apartment in Egham being marketed with a lease of a little over sixty years left. Gabriel on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr L Miller who, having purchased a ground floor apartment in Egham in January 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical homes in Egham with a long lease were valued about £227,800. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed in 2090. Considering the 65 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.
An example of a Lease Extension decision for a Egham premises is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired residue of the current lease was 82.93 years.