The closer a residential lease in Redhill nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years remaining then this decrease may be of little impact however there will become a stage 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 be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Redhill will meet the qualifying criteria; that being said a lawyer can confirm if 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 premises in Redhill with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
The conveyancers that we work with procure Redhill 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.
Two years ago Luca, started to get close to the eighty-year mark with the lease on his leasehold apartment in Redhill. Having purchased his home 18 years previously, the unexpired term was of no relevance. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Luca arranged for a lease extension just in the nick of time in January. Luca and the freeholder subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £850.
In 2010 we were contacted by Mr and Mrs. B Morgan who, having completed a purpose-built apartment in Redhill in October 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Redhill with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced yearly. The lease finished on 15 April 2080. Given that there were 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus expenses.
Mr and Mrs. D Mason bought a studio flat in Redhill in July 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Redhill with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected yearly. The lease expired on 21 January 2091. Having 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.