The re-sale value of a leasehold property in Forest Gate is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed well before the eighty year mark. Leasehold Reform legislation enables Forest Gate qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Forest Gate with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Forest Gate lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jack was the the leasehold owner of a studio apartment in Forest Gate on the market with a lease of fraction over sixty years left. Jack on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. L Roux took over the lease of a ground floor flat in Forest Gate in September 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Forest Gate with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired in 2102. Taking into account 77 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
An example of a Freehold Enfranchisement decision for a Forest Gate property is 52 & 54 Green Street in February 2010. Following a vesting order by the County Court the Tribunal decided that the price that the Applicant for the freehold interest should pay is £20,543 This case related to 2 flats. The unexpired residue of the current lease was 78 and 80.