It’s an underpublicised truth that a Forest Row residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Forest Row property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Forest Row will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Forest Row with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Forest Row leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful negotiations with the landlord of her one bedroom apartment in Forest Row, Sophie commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was finalised in August 2007. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. V Girard , who acquired a newly refurbished apartment in Forest Row in January 1998. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical properties in Forest Row with an extended lease were in the region of £171,800. The average amount of ground rent was £55 billed quarterly. The lease lapsed on 10 April 2074. Given that there were 50 years as a residual term we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including professional charges.
Last July we were approach by Mrs Madeleine Rogers , who moved into a first floor apartment in Forest Row in October 2008. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative flats in Forest Row with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2094. Having 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.