There is no doubt about it a leasehold property in Leatherhead is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Leatherhead will qualify for this right; that being said a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Leatherhead with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Leatherhead leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a 2 bedroom flat in Leatherhead on the market with a lease of just over sixty years remaining. Connor on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. F Hall completed a one bedroom apartment in Leatherhead in August 2009. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical residencies in Leatherhead with an extended lease were valued about £210,000. The average amount of ground rent was £50 collected quarterly. The lease elapsed in 2106. Considering the 80 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2012 we were e-mailed by Mr Matthew Gómez who, having was assigned a lease of a one bedroom flat in Leatherhead in August 2008. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable flats in Leatherhead with an extended lease were worth £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished in 2095. Taking into account 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.