Unfortunately that a Forest Row residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. 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.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls below eighty 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. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Forest Row will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Forest Row with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Forest Row can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Forest Row lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Riley, started to get close to the eighty-year threshold with the lease on his studio apartment in Forest Row. Having purchased his flat two decades ago, the lease term was of little interest. Luckily, he became aware that he needed to take steps soon on a lease extension. Riley extended the lease at the eleventh hour last March. Riley and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had gone below 80 years, the figure would have become more costly by a minimum £925.
In 2009 we were approached by Mr and Mrs. D Leroy who, having completed a basement flat in Forest Row in May 2012. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar residencies in Forest Row with an extended lease were worth £240,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired in 2088. Given that there were 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.
Last Christmas we were e-mailed by Mr and Mrs. O Simon , who purchased a studio apartment in Forest Row in May 2009. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Forest Row with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 billed quarterly. The lease concluded in 2077. Having 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.