Leatherhead residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Lease extensions in Leatherhead can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Leatherhead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Cameron, came critically near to the eighty-year threshold with the lease on his leasehold apartment in Leatherhead. In buying his property 19 years previously, the lease term was of minimal relevance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Cameron was able to extend his lease just under the wire last March. Cameron and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £1,100.
Last Autumn we were called by Mr and Mrs. T Alexander , who purchased a one bedroom apartment in Leatherhead in April 2001. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical homes in Leatherhead with a long lease were worth £174,200. The average ground rent payable was £55 collected monthly. The lease came to a finish on 1 June 2076. Considering the 51 years outstanding we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
In 2010 we were called by Mr and Mrs. L Parker who, having bought a ground floor apartment in Leatherhead in October 2001. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Leatherhead with a long lease were valued about £285,000. The average amount of ground rent was £45 billed annually. The lease concluded in 2096. Considering the 71 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.