Main reasons to start your Barnsbury lease extension
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Why you should commence your Barnsbury lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/barnsbury">Barnsbury</a> leasehold property depreciates with the years remaining on the lease.
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<p> Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Barnsbury. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Barnsbury have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give careful attention before delaying your Barnsbury lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease <h4>Barnsbury property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Barnsbury with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Banks and Building Societies may decide not to grant a mortgage on a short lease</h4> Mortgage lenders have set criteria when loaning funds secured on leasehold homes. Some will simply refuse lend at all once an unexpired lease term goes below a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired term of less than 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are wanting to remortgage your Barnsbury property.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 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.
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What makes us experts in Barnsbury lease extensions?
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<p> Using our service will provide you enhanced control over the value of your Barnsbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell.
The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Barnsbury Lease Extension Example Cases:
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<h5> Amy, Barnsbury, North London,</h5>
<p> After lengthy negotiations with the landlord of her studio flat in Barnsbury, Amy initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction was finalised in May 2006. The landlord’s charges were kept to an absolute minimum.
<h5>Barnsbury case:</h5>
<p> Mrs K Brooks acquired a ground floor flat in Barnsbury in January 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Barnsbury with 100 year plus lease were valued about £225,800. The mid-range ground rent payable was £60 billed per annum. The lease ended in 2086. Having 60 years remaining we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus legals.
<div> <h5>Decision in Camden</h5>
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An example of a Lease Extension decision for a Barnsbury property is
Flat 120, Clare Court Judd Street in August 2013. the Tribunal held that the premium to be paid for the extension of the lease should be £64,650
This case was in relation to 1 flat. The remaining number of years on the lease was 62.79 years.
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