The only way is down when it comes to New Forest lease terms. New Forest flats that have a lease term less than than eighty years will drop in value even faster, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in New Forest can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 New Forest lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the landlord of her garden apartment in New Forest, Amber initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in February 2005. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Mr A Hill who, having bought a garden apartment in New Forest in April 2010. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in New Forest with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease finished on 6 June 2103. Given that there were 77 years left we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last Christmas we were called by Dr Henry Bennett , who completed a one bedroom flat in New Forest in September 2002. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar homes in New Forest with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 collected per annum. The lease terminated in 2083. Having 57 years remaining we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.