Why you should start your Gerrards Cross 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/gerrards-cross">Gerrards Cross</a> property value </h4>
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Gerrards Cross leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Gerrards Cross will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
<h4>Gerrards Cross property with a lease extension is almost the same value as a freehold</h4>
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Leasehold residencies in Gerrards Cross with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it. <h4>Mortgage lenders may not lend on a short lease</h4> Lenders do not like short residential leases. You are likely to encounter problems where you wish to sell your flat in Gerrards Cross if the unexpired lease term is under the criteria set by the majority of banks and building societies. Different lenders have varying requirements but generally theyrequire an unexpired term of at least seventy years.
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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>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>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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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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<h4> Get in touch with one of our Gerrards Cross lease extension solicitors or enfranchisement solicitors
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The conveyancers that we work with procure Gerrards Cross 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 conveyancer we work with provide it.
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Gerrards Cross Lease Extension Case Summaries:
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<h5> Jamie, Gerrards Cross, Buckinghamshire,</h5>
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Jamie owned a high value flat in Gerrards Cross being marketed with a lease of a little over 72 years left. Jamie on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
<h5>Gerrards Cross case:</h5>
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Last Spring we were phoned by Ms H Sánchez , who
bought a basement flat in Gerrards Cross in August 2011. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable residencies in Gerrards Cross with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 billed annually. The lease finished in 2078. Considering the 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.
<div> <h5>Decision in Hillingdon</h5>
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An example of a Lease Extension decision for a Gerrards Cross premises is
Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of
Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the
intermediate lessee .
The tribunal held that the price payable by the Applicant tenants of
Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the
intermediate lessee.
The tribunal held that the price payable by the Applicant tenant of
Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the
intermediate lessee .
This case was in relation to 3 flats. The unexpired term was 71 years.
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