When it comes to long leasehold premises in Forest Row, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Forest Row with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has under 80 years left, under the relevant statute the landlord can calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Santander |
The conveyancing solicitors 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 lawyer we work with provide it.
During the course of the last few months Henry, started to get close to the eighty-year mark with the lease on his basement apartment in Forest Row. In buying his home twenty years previously, the length of the lease was of little bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Henry arranged for a lease extension just under the wire in June. Henry and the freeholder eventually settled on a premium of £5,000 . If the lease had fallen lower than eighty years, the premium would have increased by a minimum £1,075.
In 2010 we were approached by Mr D Thomas who, having bought a studio flat in Forest Row in September 2007. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical flats in Forest Row with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 billed per annum. The lease ran out on 26 July 2093. Considering the 67 years left we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including legals.
In 2014 we were phoned by Dr Louise García who, having completed a one bedroom flat in Forest Row in January 2003. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Forest Row with an extended lease were valued around £206,200. The average ground rent payable was £60 collected quarterly. The lease finished in 2082. Taking into account 56 years outstanding we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.