Forest Hall leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Forest Hall will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
After unsuccessful correspondence with the landlord of her first floor flat in Forest Hall, Abbie started the lease extension process as the 80 year mark was swiftly advancing. The transaction was finalised in October 2015. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. J Wilson bought a one bedroom flat in Forest Hall in November 2000. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical flats in Forest Hall with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected per annum. The lease concluded on 18 April 2079. Given that there were 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
Last Winter we were phoned by Mr D Gray , who purchased a first floor flat in Forest Hall in January 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Forest Hall with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed annually. The lease end date was on 22 October 2099. Having 73 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.