The nearer a domestic lease in New Forest nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner than later. Most flat owners in New Forest will qualify for this right; however a conveyancer should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in New Forest with more than one hundred years left on the lease are sometimes regarded as a ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in New Forest can be a difficult process. We recommend you procure guidance from a conveyancer 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 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.
Jonathan was the the leasehold proprietor of a conversion flat in New Forest on the market with a lease of a few days over 72 years outstanding. Jonathan informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Christmas we were contacted by Dr P Bertrand , who owned a purpose-built flat in New Forest in June 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical properties in New Forest with a long lease were valued around £227,800. The average amount of ground rent was £45 collected per annum. The lease ended in 2091. Having 65 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
In 2010 we were phoned by Mr and Mrs. W Hernández who, having acquired a garden flat in New Forest in January 2005. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical residencies in New Forest with 100 year plus lease were worth £270,000. The average ground rent payable was £55 collected every twelve months. The lease terminated in 2102. Considering the 76 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.