Top reasons for Forest Row lease extension

Top reasons for lease extension now:

A Forest Row lease depreciates with the years remaining on the lease.

Forest Row leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Forest Row enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Forest Row you should see if your lease has between 70 and 90 years left. There are good reasons why a Forest Row leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Lenders may decide not to issue a mortgage on a short lease

Mortgage lenders have set criteria when loaning monies secured on leasehold homes. Many will simply refrain from lending at all once the remaining lease term slips beneath a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are intending to refinance your Forest Row property.

Why use us for your lease extension in Forest Row?

Retaining our service will provide you better control over the value of your Forest Row leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Forest Row Lease Extension Example Cases:

Megan, Forest Row, East Sussex,

Following unsuccessful discussions with the freeholder of her ground floor apartment in Forest Row, Megan initiated the lease extension process as the 80 year deadline was quickly coming. The lease extension completed in March 2010. The freeholder’s charges were restricted to below five hundred GBP.

Forest Row case:

In 2012 we were phoned by Dr W Martin who, having acquired a studio flat in Forest Row in October 2005. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable flats in Forest Row with an extended lease were valued around £198,800. The average amount of ground rent was £55 invoiced per annum. The lease expired on 20 February 2081. Given that there were 55 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.

Forest Row case:

In 2012 we were called by Mr and Mrs. D Bernard who, having moved into a first floor flat in Forest Row in November 2005. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable properties in Forest Row with an extended lease were worth £300,000. The average ground rent payable was £50 billed per annum. The lease lapsed in 2101. Having 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.