Forestdale leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Forestdale will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Forestdale can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Forestdale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy negotiations with the landlord of her purpose-built flat in Forestdale, Emily commenced the lease extension process as the 80 year threshold was rapidly advancing. The legal work was finalised in July 2013. The landlord’s charges were kept to an absolute minimum.
Ms L Ali moved into a newly refurbished apartment in Forestdale in September 2007. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative flats in Forestdale with a long lease were valued about £189,000. The mid-range ground rent payable was £55 collected monthly. The lease terminated in 2079. Taking into account 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.
An example of a Freehold Enfranchisement decision for a Forestdale flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired lease term was 78.32 years.