With a domestic leasehold premises in Egham, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned 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 80 years left. Anyone in Egham with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has fewer than 80 years left, under the current Act the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancing solicitor we work with provide it.
Caleb owned a 2 bedroom apartment in Egham on the market with a lease of fraction over sixty years unexpired. Caleb informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were approach by Dr B Rodríguez , who moved into a garden flat in Egham in June 1996. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative premises in Egham with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed in 2093. Taking into account 68 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension decision for a Egham residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired term as at the valuation date was 82.93 years.