As the length of the unexpired term of a Redhill domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Redhill will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Redhill with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Redhill leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Freddie, started to get near to the 80-year threshold with the lease on his garden flat in Redhill. Having purchased his flat 19 years ago, the length of the lease was of minimal interest. Luckily, he noticed he needed to take steps soon on Extending the lease. Freddie arranged for a lease extension just in the nick of time in June. Freddie and the landlord ultimately settled on the final figure of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £925.
In 2010 we were e-mailed by Mr and Mrs. R Murphy who, having took over the lease of a first floor flat in Redhill in April 1999. The question was if we could estimate the price would be for a 90 year lease extension. Comparative properties in Redhill with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out on 19 August 2099. Given that there were 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last year we were e-mailed by Dr I Clark , who moved into a first floor flat in Redhill in February 2003. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical premises in Redhill with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 16 January 2079. Having 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 plus legals.