Forest Row leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher premium will be due. Flat owners in Forest Row will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James owned a studio apartment in Forest Row being sold with a lease of just over 59 years left. James on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were James to invoke his statutory right. James procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Christmas we were approach by Mr and Mrs. W Mitchell , who acquired a studio apartment in Forest Row in October 2000. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar residencies in Forest Row with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed in 2078. Having 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Dr F Ali bought a garden apartment in Forest Row in January 2010. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar flats in Forest Row with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 19 February 2098. Taking into account 73 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.