Top reasons for Forestdale lease extension

Main reasons to commence your Forestdale lease extension today:

A Forestdale leasehold property depreciates with the years remaining on the lease.

Forestdale leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Forestdale residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Forestdale you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Forestdale with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to grant a mortgage with a short lease

Lenders are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Given that plenty of flats in Forestdale were built in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Irrespective of whether you are a tenant or a landlord in Forestdale,the lease extension solicitors 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 Forestdale valuers.

Forestdale Lease Extension Example Cases:

Matthew, Forestdale, South London

Last year Matthew, started to get near to the eighty-year mark with the lease on his garden flat in Forestdale. Having bought his flat 19 years ago, the lease term was of no concern. Fortunately, he became aware that he needed to take action soon on a lease extension. Matthew arranged for a lease extension just ahead of time in June. Matthew and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,125.

Forestdale case:

Last year we were called by Dr V Hill , who purchased a newly refurbished flat in Forestdale in April 1995. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar homes in Forestdale with 100 year plus lease were worth £225,800. The mid-range ground rent payable was £60 billed quarterly. The lease lapsed on 11 April 2086. Having 60 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus costs.