Redhill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Redhill tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Redhill you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Redhill leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Redhill with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Redhill can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 a wealth of experience procuring Redhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold proprietor of a high value flat in Redhill being sold with a lease of a little over 61 years left. Joshua on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2010 we were approached by Ms Isabelle Pérez who, having completed a purpose-built apartment in Redhill in November 2004. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical residencies in Redhill with an extended lease were worth £203,200. The average amount of ground rent was £65 invoiced annually. The lease lapsed in 2086. Taking into account 61 years unexpired we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.
Mr and Mrs. G Allen bought a one bedroom flat in Redhill in August 2007. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Redhill with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced quarterly. The lease ran out on 12 February 2097. Considering the 72 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.