Forest Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Forest Hill tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Forest Hill you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Forest Hill can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 procuring 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.
14 months ago Kai, started to get close to the eighty-year mark with the lease on his one bedroom flat in Forest Hill. Having purchased his flat twenty years previously, the lease term was of little bearing. Thankfully, he noticed he needed to take steps soon on Extending the lease. Kai arranged for a lease extension just ahead of time last August. Kai and the landlord who owned the flat above eventually settled on sum of £5,000 . If the lease had dipped to less than eighty years, the price would have gone up by a minimum £875.
In 2011 we were approached by Ms Phoebe Petit who, having purchased a recently refurbished apartment in Forest Hill in September 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Forest Hill with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish on 3 March 2095. Taking into account 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a Forest Hill property 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.