Why you should commence your Forest Gate lease extension

Why you should start your Forest Gate lease extension today:

A Forest Gate leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Forest Gate. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Forest Gate have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful attention before delaying your Forest Gate lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension

Forest Gate property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may not loan monies with a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are regarded as deficient for lending purposes.

Get in touch with one of our Forest Gate lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.

Forest Gate Lease Extension Example Cases:

Ryan, Forest Gate, London

Twenty four months ago Ryan, came critically near to the 80-year mark with the lease on his basement apartment in Forest Gate. In buying his property two decades ago, the length of the lease was of no interest. by good luck, he noticed he needed to take action soon on a lease extension. Ryan arranged for a lease extension at the eleventh hour in September. Ryan and the freeholder via the management company in the end settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the amount would have gone up by a minimum £1,050.

Forest Gate case:

In 2012 we were approached by Ms Amy Torres who, having was assigned a lease of a basement flat in Forest Gate in April 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Forest Gate with 100 year plus lease were valued around £275,000. The average amount of ground rent was £45 billed every twelve months. The lease termination date was in 2094. Taking into account 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.