Main reasons to commence your Forestdale lease extension

Top reasons for lease extension now:

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

Forestdale leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Forestdale will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders may not loan monies on a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will consider lending on it. Even if you don't need a mortgage, you should be aware that it is probable that someone intending to purchase your property in the future might well do, so where they are not able to secure a mortgage, then the value of the property could suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are prepared to accept

Why use us for your lease extension in Forestdale?

The lawyers that we work with procure Forestdale 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 lawyer we work with provide it.

Forestdale Lease Extension Case Studies:

Isobel, Forestdale, South London,

Following lengthy negotiations with the landlord of her garden flat in Forestdale, Isobel initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension was finalised in January 2006. The freeholder’s fees were kept to an absolute minimum.

Forestdale case:

In 2009 we were phoned by Dr S Mercier who, having purchased a first floor flat in Forestdale in September 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Forestdale with a long lease were worth £275,000. The average amount of ground rent was £65 billed annually. The lease terminated in 2094. Given that there were 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.