Forest Hill leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about 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 existing lease falls below 80 years - otherwise a higher amount will be due. Leasehold owners in Forest Hill will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Forest Hill with over 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Forest Hill 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.
Half a year ago Oliver, came very near to the 80-year threshold with the lease on his one bedroom flat in Forest Hill. Having bought his flat 19 years ago, the unexpired term was of no concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Oliver extended the lease just under the wire last March. Oliver and the freeholder subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £975.
Last August we were approach by Mr and Mrs. H Bertrand , who took over the lease of a basement apartment in Forest Hill in April 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Forest Hill with a long lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease elapsed in 2088. Taking into account 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including costs.
An example of a Lease Extension matter before the tribunal for a Forest Hill flat is Flat 1 40-42 Ewelme Road in August 2012. the Tribunal assessed the premium for the lease extension in the sum of £11,800 This case was in relation to 1 flat. The unexpired term was 61.81 years.