The nearer a residential lease in Forest of Dean gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. Many flat owners in Forest of Dean will qualify for this right; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Forest of Dean with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Forest of Dean,the lease extension solicitors that we work with will always be willing 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 of Dean valuers.
Elijah was the the leasehold owner of a high value flat in Forest of Dean on the market with a lease of a few days over 72 years left. Elijah on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were contacted by Mrs R Scott who, having completed a newly refurbished flat in Forest of Dean in May 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Forest of Dean with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired on 8 April 2090. Taking into account 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including costs.
Mr and Mrs. R Miller completed a studio apartment in Forest of Dean in October 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Forest of Dean with a long lease were valued around £270,000. The average ground rent payable was £55 billed per annum. The lease ended on 22 November 2101. Having 75 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.