Unfortunately that a Forestdale residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Forestdale property market.Where your lease has approximately 90 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 falls lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Forestdale will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Forestdale with more than one hundred years left on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Forestdale can be a difficult process. We recommend you secure 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.
Last Spring Daniel, came perilously close to the 80-year threshold with the lease on his ground floor apartment in Forestdale. Having purchased his home twenty years ago, the lease term was of minimal significance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Daniel extended the lease at the eleventh hour last April. Daniel and the freeholder eventually agreed on an amount of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,075.
In 2014 we were called by Mrs Yasmin Garcia who, having acquired a recently refurbished apartment in Forestdale in May 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Forestdale with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected yearly. The lease ended on 2 July 2100. Having 74 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Forestdale premises 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.