When it comes to long leasehold premises in Forest Hill, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Anyone in Forest Hill with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Forest Hill,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Forest Hill valuers.
After unsuccessful negotiations with the landlord of her studio apartment in Forest Hill, Danielle initiated the lease extension process as the 80 year threshold was fast advancing. The transaction was concluded in April 2011. The landlord’s fees were restricted to less than 650 GBP.
In 2014 we were contacted by Mr R Bonnet who, having moved into a purpose-built apartment in Forest Hill in February 1997. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Identical homes in Forest Hill with 100 year plus lease were valued about £261,600. The average amount of ground rent was £60 billed annually. The lease terminated in 2077. Having 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including costs.
An example of a Lease Extension case 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 related to 1 flat. The unexpired residue of the current lease was 61.81 years.