Forest Hall residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society |
Retaining our service gives you better control over the value of your Forest Hall leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Arthur, started to get near to the 80-year threshold with the lease on his studio flat in Forest Hall. In buying his property two decades ago, the lease term was of no relevance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Arthur extended the lease just ahead of time in April. Arthur and the freeholder in the end agreed on sum of £5,500 . If he not met the deadline, the premium would have become more costly by a minimum £1,100.
In 2012 we were contacted by Mr and Mrs. A Morris who, having completed a purpose-built flat in Forest Hall in March 2005. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable flats in Forest Hall with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease finished in 2084. Taking into account 58 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.
In 2013 we were contacted by Mr Thomas Morgan who, having completed a basement flat in Forest Hall in April 2002. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Forest Hall with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2104. Having 78 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.