Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Forest Gate. Clearly, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Forest Gate have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before delaying your Forest Gate lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Forest Gate can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Forest Gate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her studio flat in Forest Gate, Stephanie commenced the lease extension process as the 80 year deadline was quickly approaching. The lease extension was concluded in May 2015. The freeholder’s fees were restricted to below 550 pounds.
Last year we were phoned by Mr and Mrs. V Howard , who acquired a basement flat in Forest Gate in June 2009. The question was if we could estimate the premium could be to extend the lease by ninety years. Similar flats in Forest Gate with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed in 2082. Given that there were 56 years remaining we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The unexpired residue of the current lease was 78 and 80.