Redhill leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Redhill will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Redhill with more than 100 years left 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 reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you enhanced control over the value of your Redhill leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her leasehold flat in Redhill, Hollie started the lease extension process as the eighty year mark was fast approaching. The lease extension was finalised in March 2015. The landlord’s fees were kept to an absolute minimum.
In 2011 we were phoned by Dr F Robinson who, having bought a one bedroom apartment in Redhill in July 1996. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative residencies in Redhill with an extended lease were valued about £193,400. The average amount of ground rent was £65 invoiced annually. The lease came to a finish in 2085. Considering the 59 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.
In 2009 we were contacted by Mr and Mrs. W Morel who, having was assigned a lease of a basement flat in Redhill in June 2012. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative residencies in Redhill with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended in 2096. Given that there were 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.