Unfortunately that a Forest Hall residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Forest Hall property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Forest Hall will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax |
Using our service gives you increased control over the value of your Forest Hall leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ben, started to get near to the 80-year threshold with the lease on his ground floor apartment in Forest Hall. Having bought his home twenty years ago, the unexpired term was of minimal importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Ben was able to extend his lease just under the wire in September. Ben and the freeholder subsequently agreed on an amount of £6,000 . If the lease had descended to less than 80 years, the amount would have become more costly by at least £875.
Last year we were e-mailed by Mr and Mrs. A Hill , who moved into a one bedroom flat in Forest Hall in July 2001. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical properties in Forest Hall with a long lease were in the region of £200,000. The average amount of ground rent was £50 collected quarterly. The lease ran out in 2103. Taking into account 77 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
In 2013 we were called by Dr Maisie Parker who, having was assigned a lease of a garden apartment in Forest Hall in January 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar homes in Forest Hall with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired on 19 September 2092. Given that there were 66 years left we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.