Forest Hill leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Leasehold owners in Forest Hill will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Forest Hill with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Forest Hill leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Toby owned a studio apartment in Forest Hill on the market with a lease of fraction over fifty eight years left. Toby on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Christmas we were approach by Dr O González , who purchased a newly refurbished apartment in Forest Hill in November 1997. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable properties in Forest Hill with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ended on 28 October 2088. Having 63 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including fees.
An example of a Lease Extension matter before the tribunal for a Forest Hill premises is Flat 1 40-42 Ewelme Road in August 2012. the Tribunal assessed the premium for the lease extension in the sum of £11,800 This case affected 1 flat. The number of years remaining on the existing lease(s) was 61.81 years.