There is no doubt about it a leasehold flat or house in Forest Hall is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Forest Hall will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 conveyancers that we work with procure Forest Hall 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her one bedroom flat in Forest Hall, Natasha started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was finalised in August 2009. The landlord’s charges were negotiated to a tad over 650 pounds.
Mrs Isabel López bought a one bedroom flat in Forest Hall in October 2009. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar premises in Forest Hall with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed on 28 September 2096. Having 70 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. A Stewart was assigned a lease of a one bedroom flat in Forest Hall in July 2000. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Forest Hall with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 billed yearly. The lease ended in 2085. Considering the 59 years left we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus fees.