It’s a harsh truth that a Forestdale residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Forestdale property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Forestdale will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Forestdale with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 also be not less than 75 years at the outset 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 |
Lease extensions in Forestdale can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
During the course of the last few months Arthur, came critically close to the 80-year mark with the lease on his first floor flat in Forestdale. Having purchased his flat 19 years ago, the length of the lease was of minimal significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Arthur was able to extend his lease at the eleventh hour in July. Arthur and the freeholder via the management company subsequently agreed on sum of £6,000 . If the lease had dipped to less than eighty years, the price would have become more costly by at least £1,075.
Last Summer we were called by Ms Victoria Rose , who bought a first floor apartment in Forestdale in October 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Forestdale with an extended lease were worth £240,600. The average ground rent payable was £60 collected per annum. The lease termination date was in 2087. Considering the 62 years remaining we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Forestdale residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case affected 6 flats. The unexpired residue of the current lease was 78.32 years.