Unfortunately that a Redhill residential lease is a wasting 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.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Redhill will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Redhill with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Redhill can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Half a year ago Gabriel, came critically near to the 80-year mark with the lease on his two bedroom flat in Redhill. Having purchased his property two decades ago, the unexpired term was of minimal importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Gabriel extended the lease at the eleventh hour in April. Gabriel and the freeholder via the management company subsequently agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,000.
In 2009 we were e-mailed by Dr Hunter Lewis who, having owned a studio flat in Redhill in June 1999. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative premises in Redhill with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease terminated in 2105. Having 80 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
In 2009 we were approached by Ms C Bell who, having moved into a one bedroom apartment in Redhill in September 2009. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Redhill with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 collected annually. The lease elapsed in 2085. Taking into account 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.