Main reasons to start your Harold Wood 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/harold-wood">Harold Wood</a> property value </h4>
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Harold Wood leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Harold Wood will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
<h4>Harold Wood property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Harold Wood with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it. <h4>Banks and Building Societies may not loan monies on a short lease</h4> Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This may be problematic when you come to sell or refinance your flat as it will be practically unmortgageable. You may have no immediate intention to sell but when you do your buyer will have to hold off for two years before being able to exercise the right to a a lease extension.
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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>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>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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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Why use us for your lease extension in Harold Wood? </h4>
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The conveyancers that we work with handle Harold Wood 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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Harold Wood Lease Extension Case Studies:
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<h5> Jack, Harold Wood, Essex</h5>
<p> Last October Jack, started to get near to the 80-year threshold with the lease on his leasehold apartment in Harold Wood. In buying his home 18 years ago, the unexpired term was of minimal interest. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Jack extended the lease at the eleventh hour in August. Jack and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he not met the deadline, the amount would have gone up by at least £1,125.
<h5>Harold Wood case:</h5>
<p> Mrs K Taylor owned a ground floor apartment in Harold Wood in April 2003. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative properties in Harold Wood with a long lease were worth £193,400. The average amount of ground rent was £65 collected annually. The lease elapsed on 26 June 2085. Considering the 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.
<div> <h5>Decision in Havering</h5>
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An example of a Lease Extension case for a Harold Wood property is
37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559
This case was in relation to 1 flat. The unexpired lease term was 57.5 years.
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