For anyone whose Forest Hill home is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Forest Hill can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Forest Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Harvey, started to get near to the 80-year mark with the lease on his basement flat in Forest Hill. In buying his flat two decades ago, the unexpired term was of minimal concern. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Harvey extended the lease just ahead of time last September. Harvey and the landlord in the end settled on sum of £5,500 . If he had missed the deadline, the price would have become more exhorbitant by at least £1,050.
Last month we were phoned by Mr and Mrs. G López , who was assigned a lease of a first floor apartment in Forest Hill in March 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Forest Hill with a long lease were in the region of £173,800. The average ground rent payable was £65 billed quarterly. The lease came to a finish on 28 July 2080. Taking into account 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
An example of a Lease Extension decision for a Forest Hill residence 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.