On the balance of probabilities where you own a flat in Forest Row you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Forest Row,the lease extension solicitors that we work with will always be willing 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.
Subsequent to unsuccessful discussions with the freeholder of her ground floor apartment in Forest Row, Ellen started the lease extension process as the eighty year mark was swiftly advancing. The transaction completed in February 2011. The landlord’s charges were restricted to slightly above 700 GBP.
Last June we were contacted by Mr and Mrs. V Miller , who completed a one bedroom apartment in Forest Row in January 2006. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable homes in Forest Row with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed in 2084. Taking into account 58 years as a residual term we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Last Autumn we were contacted by Mr and Mrs. G Moore , who moved into a one bedroom flat in Forest Row in September 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Forest Row with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 billed yearly. The lease terminated on 4 October 2104. Taking into account 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 not including expenses.