Forest Row leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Forest Row residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Forest Row you would be well advised to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Forest Row leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Forest Row with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Forest Row can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
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 procuring Forest Row lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Joseph, came dangerously near to the eighty-year threshold with the lease on his two bedroom apartment in Forest Row. Having bought his home two decades ago, the unexpired term was of no importance. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Joseph arranged for a lease extension just in the nick of time in June. Joseph and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If the lease had dropped lower than 80 years, the figure would have gone up by at least £1,000.
Dr Y Scott completed a newly refurbished flat in Forest Row in February 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Forest Row with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease ended in 2096. Given that there were 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2014 we were contacted by Mr and Mrs. G Brooks who, having took over the lease of a basement flat in Forest Row in February 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Forest Row with an extended lease were valued about £230,800. The average amount of ground rent was £60 invoiced per annum. The lease finished in 2085. Considering the 60 years as a residual term we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 plus fees.