Top reasons for Forest Row lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Why you should start your Forest Row lease extension today: </h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/forest-row">Forest Row</a> property value </h4>
<p> The only way is down when it comes to Forest Row lease terms.
Forest Row properties that have a residual term fewer than 80 years will de-escalate in value even faster,
and the cost of extending your lease will rise.
<h4>Forest Row property with a lease extension has roughly the same value as a freehold</h4>
<p>
Leasehold premises in Forest Row with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it. <h4>Lending institutions will not finance a property on a short lease</h4> Lenders are really clamping down as regards to properties in Forest Row with short leases. For instance you might discover that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing the amount of potential buyers.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
<tr>
<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
Why use us for your lease extension in Forest Row? </h4>
<p> Retaining our service will provide you better control over the value of your Forest Row leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Forest Row Lease Extension Case Studies:
</h4>
<h5> Rory, Forest Row, East Sussex,</h5>
<p>
Rory owned a studio flat in Forest Row on the market with a lease of fraction over 72 years left. Rory informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord 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 £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
<h5>Forest Row case:</h5>
<p>
In 2013 we were approached by Mr Owen Kelly who, having was assigned a lease of a one bedroom apartment in Forest Row in November 2002. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable homes in Forest Row with 100 year plus lease were valued about £257,800. The average amount of ground rent was £65 collected per annum. The lease expiry date was on 14 April 2091. Taking into account 65 years outstanding we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus fees.
<h5>Forest Row case:</h5>
<p> Mr Tommy Brown took over the lease of a garden flat in Forest Row in March 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Forest Row with 100 year plus lease were worth £196,400. The mid-range ground rent payable was £55 billed yearly. The lease end date was on 5 August 2080. Having 54 years unexpired we calculated the premium to the landlord to extend the lease to be between £35,200 and £40,600 exclusive of professional charges.
</div>