The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Forest Row can extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Forest Row lease extension. Shelving that expense now simply escalates the price you will ultimately be required to pay to extend the lease.
Leasehold properties in Forest Row with over 100 years unexpired 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 lawyers that we work with procure Forest Row 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.
Jude owned a studio apartment in Forest Row on the market with a lease of just over fifty eight years outstanding. Jude on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last year we were e-mailed by Ms Alisha Baker , who acquired a one bedroom flat in Forest Row in February 1997. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar flats in Forest Row with an extended lease were worth £198,800. The average amount of ground rent was £55 collected annually. The lease lapsed in 2080. Taking into account 55 years unexpired we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.
In 2011 we were phoned by Mr and Mrs. S Lee who, having was assigned a lease of a basement apartment in Forest Row in January 2002. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Forest Row with a long lease were in the region of £300,000. The average ground rent payable was £50 collected annually. The lease expired in 2100. Having 75 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.