Why you should commence your Forest of Dean lease extension

Top reasons for lease extension now:

A Forest of Dean lease depreciates with the years remaining on the lease.

Forest of Dean leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Forest of Dean will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.

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

Leasehold premises in Forest of Dean with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders will not grant a mortgage on a short lease

Banks and Building Societies have specific criteria when loaning funds secured on leasehold homes. Some will simply refrain from lending at all once the remaining lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to refinance your Forest of Dean home.

What makes us experts in Forest of Dean lease extensions?

Irrespective of whether you are a tenant or a freeholder in Forest of Dean,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Forest of Dean valuers.

Forest of Dean Lease Extension Example Cases:

Cameron, Forest of Dean, Gloucestershire

Twenty four months ago Cameron, came perilously near to the 80-year mark with the lease on his purpose- built apartment in Forest of Dean. In buying his home two decades ago, the unexpired term was of no significance. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Cameron extended the lease just ahead of time in June. Cameron and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £925.

Forest of Dean case:

Mr and Mrs. W Khan completed a ground floor flat in Forest of Dean in January 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Forest of Dean with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease finished in 2077. Taking into account 51 years remaining we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of fees.

Forest of Dean case:

In 2014 we were called by Mr Y David who, having moved into a ground floor flat in Forest of Dean in January 1995. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative homes in Forest of Dean with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 26 October 2088. Given that there were 62 years remaining we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.