For anyone whose Forest Row home is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Forest Row,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Forest Row valuers.
Eliot was the the leasehold owner of a 2 bedroom apartment in Forest Row on the market with a lease of fraction over 61 years outstanding. Eliot informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and secured an acceptable deal informally and readily saleable.
In 2014 we were phoned by Mr and Mrs. B Rogers who, having completed a purpose-built apartment in Forest Row in April 1997. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Forest Row with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease end date was on 14 June 2096. Given that there were 70 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Christmas we were contacted by Mrs Francesca Ali , who completed a garden flat in Forest Row in March 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Forest Row with 100 year plus lease were valued around £223,400. The average amount of ground rent was £60 collected annually. The lease ended in 2085. Considering the 59 years outstanding we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including legals.