It’s an underpublicised truth that a Redhill residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Redhill property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Redhill will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Lease extensions in Redhill can be a difficult process. We recommend you get professional help from a conveyancer 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 Redhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the landlord of her basement flat in Redhill, Zoe initiated the lease extension process as the eighty year threshold was rapidly coming. The lease extension completed in April 2008. The freeholder’s fees were restricted to a tad over 500 pounds.
In 2010 we were phoned by Mr J Alexander who, having took over the lease of a first floor apartment in Redhill in April 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Redhill with a long lease were worth £235,200. The average amount of ground rent was £45 collected per annum. The lease concluded on 23 January 2092. Considering the 66 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.
Mrs Louise James took over the lease of a garden apartment in Redhill in June 1998. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable properties in Redhill with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease finished in 2103. Considering the 77 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.