When it comes to domestic leasehold property in Forest Row, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Forest Row with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. When a lease has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Forest Row,the lease extension experts that we work with will always be happy 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 Row valuers.
Jackson was the the leasehold owner of a studio flat in Forest Row being sold with a lease of fraction over 61 years unexpired. Jackson on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2009 we were contacted by Dr Reuben Petit who, having was assigned a lease of a recently refurbished flat in Forest Row in June 2007. The question was if we could estimate the price would likely be to extend the lease by 90 years. Identical properties in Forest Row with an extended lease were in the region of £233,200. The average ground rent payable was £60 billed monthly. The lease came to a finish on 28 February 2087. Having 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of costs.
Last year we were e-mailed by Mrs V Collins , who moved into a garden apartment in Forest Row in May 2003. The question was if we could approximate the premium would be for a ninety year lease extension. Identical homes in Forest Row with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease finished on 26 March 2076. Given that there were 50 years left we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.