Why you should commence your Aldermanbury lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/aldermanbury">Aldermanbury</a> property value </h4>
<p> With a domestic leasehold premises in Aldermanbury, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years remaining. Residents in Aldermanbury with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the relevant statute the landlord is entitled to calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due. <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
<h4>Lending institutions will not grant a mortgage on a short lease</h4>
Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be unacceptable security.
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<tr><th>Lender</th>
<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Godiva Mortgages</td>
<td> A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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Why use us for your lease extension in Aldermanbury? </h4>
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Lease extensions in Aldermanbury can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Aldermanbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Aldermanbury Lease Extension Case Studies:
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<h5> Connor, Aldermanbury, London,</h5>
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Connor was the the leasehold proprietor of a 2 bedroom apartment in Aldermanbury being sold with a lease of just over fifty eight years left. Connor informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
<h5>Aldermanbury case:</h5>
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In 2013 we were contacted by Dr G James who, having was assigned a lease of a basement flat in Aldermanbury in February 2011. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical premises in Aldermanbury with a long lease were in the region of £243,000. The average amount of ground rent was £65 collected monthly. The lease ended in 2089. Taking into account 63 years unexpired we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
<div> <h5>Decision in Hackney</h5>
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An example of a Lease Extension decision for a Aldermanbury residence is
137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00.
This case was in relation to 2 flats. The unexpired term was 72.39 years.
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