Forest Row leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half 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 Row will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Forest Row 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.
Aiden owned a conversion apartment in Forest Row on the market with a lease of a few days over 61 years unexpired. Aiden on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Dr N Taylor acquired a garden apartment in Forest Row in June 2002. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative residencies in Forest Row with 100 year plus lease were worth £196,400. The average ground rent payable was £55 collected monthly. The lease elapsed on 18 June 2080. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.
Mr and Mrs. G Reed bought a one bedroom apartment in Forest Row in September 1998. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable premises in Forest Row with a long lease were valued around £295,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish on 7 July 2100. Considering the 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.