When it comes to long leasehold premises in Forest Row, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Leasehold owners in Forest Row with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Forest Row with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Using 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 respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago David, came dangerously close to the 80-year threshold with the lease on his one bedroom flat in Forest Row. Having bought his home 18 years ago, the unexpired term was of no relevance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. David extended the lease just under the wire in May. David and the freeholder in the end agreed on an amount of £5,000 . If the lease had dropped to less than 80 years, the price would have gone up by a minimum £1,100.
In 2014 we were e-mailed by Mr and Mrs. D Michel who, having moved into a purpose-built apartment in Forest Row in June 2008. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Forest Row with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 billed yearly. The lease ended on 19 November 2085. Considering the 59 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including professional charges.
Mr and Mrs. C Gómez bought a basement flat in Forest Row in June 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Forest Row with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 5 September 2105. Taking into account 79 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.