Why you should start your Great Baddow lease extension
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Main reasons to start your Great Baddow lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/great-baddow">Great Baddow</a> lease depreciates with the years remaining on the lease.
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<p> The only way is down when it comes to Great Baddow lease terms.
Great Baddow leaseholds that have a lease term fewer than 80 years will reduce in value even faster,
and the cost to extend your lease will rise.
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
<h4>Lending institutions may decide not to issue a mortgage on a short lease</h4> Banks and building societies are inclined not grant a mortgage on short residential leases. You are likely to encounter problems where you need to sell your flat in Great Baddow if the unexpired lease term is under the criteria set by most lenders. Different lenders have varying criteria but in the main they are looking for an unexpired term of at least 65 years.
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<th> Requirement
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<td>Chelsea 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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<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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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What makes us experts in Great Baddow lease extensions?
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The conveyancers that we work with procure Great Baddow 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 conveyancing solicitor we work with provide it.
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Great Baddow Lease Extension Case Summaries:
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<h5> Matthew, Great Baddow, Essex</h5>
<p> Half a year ago Matthew, came critically near to the 80-year mark with the lease on his basement apartment in Great Baddow. Having purchased his property 18 years ago, the lease term was of little importance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Matthew was able to extend his lease just under the wire last May. Matthew and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had fallen below 80 years, the amount would have escalated by a minimum £1,075.
<h5>Great Baddow case:</h5>
<p> Dr Jason García bought a purpose-built apartment in Great Baddow in February 2011. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar properties in Great Baddow with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced annually. The lease terminated in 2098. Given that there were 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
<h5>Great Baddow case:</h5>
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In 2014 we were phoned by Mr David Davies who, having bought a one bedroom apartment in Great Baddow in January 2008. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Great Baddow with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 invoiced annually. The lease expired in 2078. Considering the 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.
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