Leatherhead leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Leatherhead will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Leatherhead with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Leatherhead 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 lawyer we work with provide it.
Following protracted negotiations with the landlord of her first floor flat in Leatherhead, Amy initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was finalised in August 2015. The landlord’s costs were negotiated to approximately 650 GBP.
Mr N Dupont completed a one bedroom flat in Leatherhead in May 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable residencies in Leatherhead with an extended lease were valued around £295,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish in 2101. Considering the 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Mr Daniel Gómez was assigned a lease of a purpose-built apartment in Leatherhead in March 1997. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar flats in Leatherhead with an extended lease were worth £250,400. The average amount of ground rent was £65 billed per annum. The lease expired in 2090. Taking into account 64 years left we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus professional charges.