For anyone whose Forest Hall property is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
Leasehold premises in Forest Hall with in excess of 100 years remaining on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Forest Hall can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Forest Hall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her garden apartment in Forest Hall, Holly commenced the lease extension process as the eighty year deadline was fast coming. The transaction was finalised in January 2011. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. M Ward bought a purpose-built apartment in Forest Hall in June 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Forest Hall with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 collected per annum. The lease ended in 2092. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including legals.
Mr Hugo Campbell acquired a garden flat in Forest Hall in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Forest Hall with an extended lease were valued about £206,200. The mid-range amount of ground rent was £55 billed monthly. The lease ended in 2081. Considering the 56 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.