Step 2: Take apart the handle
When the outside cover of the handle is removed, the internal parts look like what you see in this photo. I've arranged the handle parts in the order that they are inside of the handle covering. Three thick pieces of leather comprise the padding in this particular handle, with the load bearing strap (with the torn end) sandwiched between the leather padding.
At the top of the photo is what remained of the thin leather cover from the outside of this handle.