Forest Hall leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher premium will be due. Leasehold owners in Forest Hall will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Forest Hall with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Forest Hall leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Seth, came critically close to the 80-year threshold with the lease on his leasehold apartment in Forest Hall. In buying his property two decades ago, the lease term was of no relevance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Seth arranged for a lease extension at the eleventh hour in August. Seth and the landlord in the end agreed on sum of £5,500 . If the lease had gone lower than 80 years, the amount would have become more costly by a minimum £900.
Last Christmas we were phoned by Mr Cameron James , who bought a basement apartment in Forest Hall in August 2012. The question was if we could estimate the price could be for a 90 year lease extension. Similar properties in Forest Hall with a long lease were worth £225,800. The mid-range amount of ground rent was £60 billed yearly. The lease finished on 8 March 2086. Considering the 60 years unexpired we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.
Last month we were contacted by Mr and Mrs. R Bernard , who moved into a recently refurbished flat in Forest Hall in June 2012. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Identical premises in Forest Hall with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected annually. The lease lapsed in 2106. Considering the 80 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.