Forest of Dean leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Forest of Dean will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Forest of Dean with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 |
| 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. |
The conveyancing solicitors that we work with handle 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.
Following lengthy correspondence with the freeholder of her studio apartment in Forest of Dean, Amy started the lease extension process as the eighty year deadline was fast nearing. The lease extension was concluded in March 2006. The landlord’s costs were kept to an absolute minimum.
Last January we were e-mailed by Mr and Mrs. L Mercier , who owned a basement flat in Forest of Dean in March 2005. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Forest of Dean with a long lease were in the region of £249,200. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2076. Taking into account 51 years remaining we estimated the compensation to the freeholder to extend the lease to be within £42,800 and £49,400 exclusive of costs.
Mrs U Phillips purchased a one bedroom flat in Forest of Dean in September 2009. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Forest of Dean with an extended lease were worth £208,200. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2086. Considering the 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.