Why you should commence your Forest Row lease extension

Why you should start your Forest Row lease extension today:

Increase your lease and increase your Forest Row property value

Forest Row leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Forest Row will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.

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

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not issue a mortgage with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with less than seventy years left to run - although this varies from lender to lender. A buyer will undoubtedly find it difficult to obtain a mortgage and this could result in your Forest Row property becoming difficult to dispose of or to obtain finance on.

Get in touch with one of our Forest Row lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Forest Row lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Forest Row Lease Extension Example Cases:

William, Forest Row, East Sussex,

William was the the leasehold owner of a studio flat in Forest Row on the market with a lease of a few days over sixty years unexpired. William informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Forest Row case:

In 2010 we were phoned by Dr A Lewis who, having acquired a first floor flat in Forest Row in October 1998. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Forest Row with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 22 July 2100. Considering the 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.

Forest Row case:

Mr and Mrs. F Anderson owned a one bedroom apartment in Forest Row in October 2007. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative homes in Forest Row with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 billed per annum. The lease ended in 2089. Taking into account 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.