Forest Row leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Leasehold owners in Forest Row will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder 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.
In recent months Cameron, started to get close to the eighty-year mark with the lease on his two bedroom flat in Forest Row. Having purchased his home twenty years ago, the unexpired term was of minimal significance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Cameron was able to extend his lease at the eleventh hour in January. Cameron and the landlord subsequently agreed on a premium of £6,000 . If the lease had dipped below eighty years, the amount would have gone up by at least £975.
Mr and Mrs. P Phillips purchased a first floor apartment in Forest Row in July 2007. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Identical flats in Forest Row with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed on 17 June 2097. Taking into account 71 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Dr N Campbell acquired a studio flat in Forest Row in May 2008. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable properties in Forest Row with a long lease were in the region of £230,800. The average amount of ground rent was £60 collected monthly. The lease terminated in 2086. Considering the 60 years remaining we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus professional charges.