There is no doubt about it a leasehold property in Forest of Dean is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Forest of Dean will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society |
The conveyancers that we work with undertake Forest of Dean lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Oscar, came very near to the 80-year mark with the lease on his ground floor apartment in Forest of Dean. In buying his property two decades ago, the lease term was of no interest. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Oscar was able to extend his lease at the eleventh hour in June. Oscar and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £950.
Last month we were called by Mrs Robyn Miller , who owned a one bedroom apartment in Forest of Dean in May 2009. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Forest of Dean with a long lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced monthly. The lease finished in 2104. Given that there were 78 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Last Spring we were approach by Dr Logan Ricardo , who bought a garden flat in Forest of Dean in May 2007. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Forest of Dean with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 collected monthly. The lease concluded in 2084. Taking into account 58 years unexpired we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including expenses.