Forest of Dean leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Forest of Dean will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Retaining our service will provide you increased control over the value of your Forest of Dean leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kai owned a high value flat in Forest of Dean on the market with a lease of a little over 72 years outstanding. Kai informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Last Christmas we were called by Mr and Mrs. B Davis , who bought a first floor apartment in Forest of Dean in October 1999. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Identical homes in Forest of Dean with a long lease were worth £193,400. The average amount of ground rent was £65 collected monthly. The lease elapsed in 2085. Taking into account 59 years unexpired we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.
Mrs Aimee Lewis moved into a studio flat in Forest of Dean in November 2005. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative homes in Forest of Dean with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish in 2096. Taking into account 70 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.