Forest of Dean leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Forest of Dean will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Forest of Dean with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Forest of Dean leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Felix was the the leasehold owner of a high value apartment in Forest of Dean being marketed with a lease of a few days over 61 years left. Felix informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. B Green completed a garden apartment in Forest of Dean in April 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Forest of Dean with an extended lease were worth £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 11 November 2101. Considering the 76 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
Last Christmas we were contacted by Dr Caitlin White , who moved into a purpose-built apartment in Forest of Dean in July 2011. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Forest of Dean with an extended lease were valued about £176,200. The average amount of ground rent was £65 collected every twelve months. The lease concluded on 25 February 2081. Given that there were 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus costs.