Main reasons to start your Forest Gate lease extension
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Why you should start your Forest Gate lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/forest-gate">Forest Gate</a> property value </h4>
<p> There is no doubt about it a leasehold property in Forest Gate is a wasting asset as a result of the shortening lease. If the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Forest Gate will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold properties in Forest Gate with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it. <h4>Banks and Building Societies may not issue a mortgage with a short lease</h4>
The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically 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.
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<th> Requirement
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<td>Accord Mortgages</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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What makes us experts in Forest Gate lease extensions?
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<p> Irrespective of whether you are a tenant or a freeholder in Forest Gate,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Forest Gate valuers.
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Forest Gate Lease Extension Case Summaries:
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<h5> Joshua, Forest Gate, London,</h5>
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Joshua owned a 2 bedroom apartment in Forest Gate being sold with a lease of a little over sixty years unexpired. Joshua informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
<h5>Forest Gate case:</h5>
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Last Autumn we were phoned by Dr N Cooper , who
completed a first floor flat in Forest Gate in April 2009. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical flats in Forest Gate with 100 year plus lease were worth £166,800. The average amount of ground rent was £50 billed monthly. The lease ended in 2076. Given that there were 50 years remaining we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus professional charges.
<div> <h5>Decision in Newham</h5>
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An example of a Freehold Enfranchisement matter before the tribunal for a Forest Gate flat 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 term was 78 and 80.
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