Unfortunately that a Forest Row residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Forest Row property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Forest Row will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Forest Row with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Forest Row leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her one bedroom apartment in Forest Row, Chloe commenced the lease extension process as the eighty year mark was rapidly advancing. The legal work was concluded in February 2015. The freeholder’s charges were restricted to approximately 650 pounds.
Ms Isabella Dupont was assigned a lease of a first floor flat in Forest Row in November 2000. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Forest Row with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 invoiced monthly. The lease lapsed in 2095. Given that there were 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last year we were contacted by Mr J Rogers , who was assigned a lease of a purpose-built apartment in Forest Row in February 1995. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative flats in Forest Row with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expiry date was in 2084. Considering the 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.