When it comes to residential leasehold premises in New Forest, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in New Forest with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB 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 also be not less than 75 years 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. |
| 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 conveyancing solicitor 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 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.
Caleb owned a studio apartment in New Forest being sold with a lease of a few days over fifty eight years remaining. Caleb on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr Hunter Nguyen acquired a first floor flat in New Forest in February 1999. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable properties in New Forest with a long lease were in the region of £254,200. The average amount of ground rent was £60 billed every twelve months. The lease expired in 2076. Given that there were 51 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of expenses.
In 2014 we were called by Mr P Díaz who, having completed a garden apartment in New Forest in September 1996. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical properties in New Forest with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 collected monthly. The lease terminated in 2087. Considering the 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including expenses.