Stop! Your Lease Extension in Forest Gate Could Be FREE

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Many leaseholders in Forest Gate are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Forest Gate has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to start your Forest Gate lease extension

Top reasons for lease extension now:

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

Forest Gate residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.

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

It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not lend on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.

What makes us experts in Forest Gate lease extensions?

Using our service gives you enhanced control over the value of your Forest Gate leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Forest Gate Lease Extension Case Studies:

Phoebe, Forest Gate, London,

After unsuccessful discussions with the freeholder of her garden apartment in Forest Gate, Phoebe commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction completed in September 2011. The freeholder’s costs were restricted to slightly above 450 pounds.

Forest Gate case:

Mr and Mrs. J Scott took over the lease of a purpose-built apartment in Forest Gate in April 2008. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Forest Gate with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 invoiced every twelve months. The lease expiry date was in 2088. Having 62 years unexpired we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including legals.

Decision in Newham

An example of a Freehold Enfranchisement case for a Forest Gate residence 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 term as at the valuation date was 78 and 80.