On the balance of probabilities where you own a flat in Forest Hill you actually own a long leasehold interest over your property
Leasehold premises in Forest Hill with over one hundred years remaining on the lease are sometimes 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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Forest Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide 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.
In the wake of 9 months of lengthy discussions with the freeholder of her two bedroom flat in Forest Hill, Louise commenced the lease extension process as the eighty year mark was fast coming. The transaction was finalised in September 2015. The freeholder’s charges were restricted to about 650 pounds.
Last Christmas we were called by Mr and Mrs. J James , who moved into a one bedroom flat in Forest Hill in February 2004. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical residencies in Forest Hill with an extended lease were in the region of £254,200. The average ground rent payable was £60 invoiced quarterly. The lease ended in 2076. Considering the 51 years remaining we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus legals.
An example of a Lease Extension case for a Forest Hill flat 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 unexpired term as at the valuation date was 61.81 years.