Why you should commence your Forest Gate lease extension

Top reasons for lease extension now:

Increase your lease and increase your Forest Gate property value

On the balance of probabilities where you own a flat in Forest Gate you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold properties in Forest Gate with more than 100 years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Lending institutions may not finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This may be problematic when you come to dispose of or refinance your property as it will be practically unmortgageable. You might have no imminent intention to sell but when you do your purchaser must wait two years before being able to commence the legal procedures for an extension to the lease.

Why use us for your lease extension in Forest Gate?

Engaging our service gives you increased control over the value of your Forest Gate leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Forest Gate Lease Extension Example Cases:

Harry, Forest Gate, London

In 2014 Harry, started to get close to the eighty-year mark with the lease on his ground floor flat in Forest Gate. Having bought his flat 18 years ago, the lease term was of little relevance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Harry arranged for a lease extension just ahead of time last January. Harry and the freeholder subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £1,075.

Forest Gate case:

Dr Leon Nguyen owned a purpose-built flat in Forest Gate in September 1998. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Forest Gate with an extended lease were valued about £243,000. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2089. Given that there were 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus legals.