As the length of the unexpired term of a Forest Row domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Forest Row will meet the qualifying criteria; however a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Forest Row with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective 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 in-depth market knowledge and the close ties they enjoy with Forest Row valuers.
Half a year ago Toby, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Forest Row. In buying his home two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he needed to take action soon on a lease extension. Toby was able to extend his lease just ahead of time in August. Toby and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,000.
Last month we were phoned by Ms S Wood , who bought a one bedroom apartment in Forest Row in September 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Forest Row with a long lease were valued around £265,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2092. Having 66 years unexpired we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.
Last year we were called by Mr Austin Davis , who acquired a garden apartment in Forest Row in June 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Forest Row with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 2 January 2081. Given that there were 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.