Why you should commence your Forest Hill lease extension

Top reasons for lease extension now:

Increase your lease and increase your Forest Hill property value

When it comes to domestic leasehold property in Forest Hill, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years remaining. Residents in Forest Hill with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years remaining, under the current legislation the freeholder can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

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

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders may not loan monies with a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be conscious that it is probable that someone wanting to acquire your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the market price of the property will likely suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to accept

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

Lease extensions in Forest Hill can be a difficult process. We recommend you get guidance 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 in-depth market knowledge procuring Forest Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Forest Hill Lease Extension Case Summaries:

Jamie, Forest Hill, South East London

Last October Jamie, started to get close to the 80-year mark with the lease on his one bedroom flat in Forest Hill. In buying his home two decades ago, the lease term was of no significance. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Jamie extended the lease just ahead of time in July. Jamie and the freeholder via the management company in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,075.

Forest Hill case:

Mr A Lefèvre was assigned a lease of a studio flat in Forest Hill in July 2001. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar residencies in Forest Hill with an extended lease were valued around £275,000. The average amount of ground rent was £55 collected annually. The lease finished on 18 July 2102. Considering the 76 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.