Forest Row leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Forest Row tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Forest Row you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Forest Row with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with undertake Forest Row lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Twenty four months ago Thomas, started to get near to the 80-year threshold with the lease on his studio flat in Forest Row. In buying his property two decades ago, the unexpired term was of no significance. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Thomas was able to extend his lease at the eleventh hour last March. Thomas and the landlord eventually settled on the final figure of £5,000 . If he had missed the deadline, the amount would have become more exhorbitant by at least £1,000.
In 2009 we were called by Dr Luca Young who, having took over the lease of a studio apartment in Forest Row in April 2000. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical properties in Forest Row with an extended lease were worth £174,200. The average ground rent payable was £55 billed yearly. The lease finished in 2077. Given that there were 51 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Last Christmas we were approach by Mr and Mrs. G Taylor , who took over the lease of a ground floor flat in Forest Row in April 2000. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Forest Row with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 billed yearly. The lease ended on 25 August 2097. Considering the 71 years outstanding we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.