There is no doubt about it a leasehold flat or house in Egham is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Egham will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancers that we work with handle Egham 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 conveyancer we work with provide it.
Last October Lucas, came precariously near to the eighty-year threshold with the lease on his one bedroom apartment in Egham. Having purchased his home two decades ago, the length of the lease was of minimal importance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Lucas was able to extend his lease at the eleventh hour in August. Lucas and the freeholder via the management company ultimately settled on sum of £5,500 . If the lease had descended to less than 80 years, the figure would have increased by a minimum £900.
In 2013 we were approached by Mr and Mrs. W Pérez who, having purchased a one bedroom apartment in Egham in August 1998. The question was if we could estimate the price could be for a ninety year lease extension. Identical residencies in Egham with 100 year plus lease were valued around £191,000. The mid-range ground rent payable was £65 billed quarterly. The lease came to a finish on 27 September 2084. Taking into account 58 years left we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus professional charges.
An example of a Lease Extension decision for a Egham property 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 lease term was 82.93 years.