Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Forest Gate. Clearly, the term of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Forest Gate have the legal entitlement to extend the lease for an additional 90 years under statute. You should give careful attention before delaying your Forest Gate lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Forest Gate,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Forest Gate valuers.
Half a year ago Oscar, started to get close to the 80-year mark with the lease on his first floor apartment in Forest Gate. In buying his home two decades ago, the unexpired term was of no concern. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Oscar was able to extend his lease at the eleventh hour in July. Oscar and the landlord in the end agreed on an amount of £6,000 . If the lease had fallen below eighty years, the sum would have increased by a minimum £1,050.
In 2014 we were e-mailed by Mr and Mrs. C Bonnet who, having bought a one bedroom flat in Forest Gate in November 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Forest Gate with a long lease were valued around £300,000. The mid-range ground rent payable was £50 billed yearly. The lease ended in 2101. Considering the 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
An example of a Freehold Enfranchisement case 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 was in relation to 2 flats. The unexpired term was 78 and 80.