Reigate leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Reigate will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Reigate can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Reigate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Noah, came dangerously close to the 80-year mark with the lease on his one bedroom flat in Reigate. Having purchased his property two decades ago, the length of the lease was of minimal concern. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Noah was able to extend his lease just ahead of time last January. Noah and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he not met the deadline, the price would have gone up by a minimum £875.
Last month we were called by Mr and Mrs. R André , who was assigned a lease of a studio apartment in Reigate in May 2000. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Identical premises in Reigate with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced monthly. The lease came to a finish on 14 September 2092. Given that there were 67 years left we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus legals.
In 2013 we were called by Mrs Melissa Morel who, having owned a one bedroom flat in Reigate in October 2012. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative residencies in Reigate with a long lease were valued about £201,200. The average ground rent payable was £55 billed monthly. The lease elapsed on 25 February 2081. Taking into account 56 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.