The only way is down when it comes to Redhill lease terms. Redhill flats that have a remaining term shorter than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will rise.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Following protracted correspondence with the landlord of her two bedroom flat in Redhill, Mollie initiated the lease extension process as the 80 year mark was fast nearing. The transaction completed in June 2010. The landlord’s fees were restricted to less than five hundred pounds.
Last month we were e-mailed by Mrs Jessica Watson , who purchased a one bedroom flat in Redhill in January 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Redhill with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed on 10 July 2078. Having 52 years left we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.
Last Christmas we were phoned by Mrs Kayleigh Torres , who acquired a garden apartment in Redhill in October 2008. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Redhill with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 18 September 2089. Taking into account 63 years remaining we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus costs.