Forestdale Lease Extension - Free Consultation

Before you progress with your lease extension in Forestdale
Get a quote from one of our lease extension experts with over 20 years experience.

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Why you should start your Forestdale lease extension


Main reasons to commence your Forestdale lease extension today:

Increase your lease and increase your Forestdale property value

Forestdale residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

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

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions will not lend with a short lease

Banks and building societies are inclined not grant a mortgage on short residential leases. You are likely to experience difficulties where you wish to sell your flat in Forestdale if the remaining term of your lease is below the criteria set by most mortgage companies. Different lenders have varying requirements but in the main they are looking for an unexpired term of at least seventy years.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.

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

Using our service will provide you increased control over the value of your Forestdale leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Forestdale Lease Extension Case Studies:

Harrison, Forestdale, South London,

Harrison owned a conversion flat in Forestdale being marketed with a lease of just over sixty years remaining. Harrison on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and secured an acceptable deal informally and readily saleable.

Forestdale case:

Mrs Amy Adams took over the lease of a basement flat in Forestdale in February 2006. We are asked if we could approximate the premium could be to extend the lease by 90 years. Similar residencies in Forestdale with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2093. Given that there were 68 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.

Decision in Croydon

An example of a Freehold Enfranchisement case for a Forestdale flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case related to 6 flats. The unexpired lease term was 78.32 years.