The market value of Forest Row leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Forest Row with over one hundred years outstanding on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Forest Row,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Forest Row valuers.
During the course of the last few months Kyle, started to get near to the eighty-year mark with the lease on his leasehold flat in Forest Row. Having purchased his flat 19 years previously, the unexpired term was of no interest. by good luck, he realised he needed to take action soon on Extending the lease. Kyle was able to extend his lease at the eleventh hour in June. Kyle and the freeholder ultimately settled on sum of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,000.
Mr and Mrs. H Laurent took over the lease of a studio apartment in Forest Row in May 1999. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparative flats in Forest Row with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated in 2101. Given that there were 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr Jacob Cook completed a garden apartment in Forest Row in July 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Forest Row with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease expiry date was on 7 April 2090. Considering the 64 years left we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.