With a long leasehold premises in Forestdale, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Forestdale with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once the lease term has less than eighty years remaining, under the current Act the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Forestdale,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Forestdale valuers.
David was the the leasehold proprietor of a 2 bedroom apartment in Forestdale being sold with a lease of fraction over sixty years outstanding. David on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were David to exercise his statutory right. David procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Last year we were approach by Mr and Mrs. P Gómez , who owned a studio apartment in Forestdale in November 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Forestdale with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 collected monthly. The lease elapsed on 5 February 2091. Given that there were 67 years left we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Forestdale residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The number of years remaining on the existing lease(s) was 78.32 years.