Forest Gate leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Forest Gate will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Forest Gate with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Forest Gate can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 Gate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Henry, came dangerously near to the 80-year mark with the lease on his first floor flat in Forest Gate. Having bought his home two decades ago, the lease term was of little significance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Henry was able to extend his lease at the eleventh hour in July. Henry and the landlord eventually settled on the final figure of £5,500 . If the lease had fallen lower than eighty years, the amount would have increased by at least £1,100.
Last Winter we were phoned by Mr Logan González , who acquired a ground floor apartment in Forest Gate in April 2006. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar premises in Forest Gate with a long lease were worth £201,200. The mid-range amount of ground rent was £55 billed monthly. The lease termination date was in 2081. Taking into account 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
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 related to 2 flats. The unexpired lease term was 78 and 80.