Why you should start your Hedon lease extension
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Main reasons to start your Hedon lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/hedon">Hedon</a> leasehold property depreciates with the years remaining on the lease.
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Hedon leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Hedon will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
<h4>Hedon property with a lease extension is almost the same value as a freehold</h4>
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Leasehold residencies in Hedon with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Banks and Building Societies may not lend on a short lease</h4> The definition of a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties once you wish to dispose of or remortgage your flat as it will be effectively unmortgageable. You may have no imminent plan to sell but when you do your buyer must hold off for two years before they can commence the legal procedures for an extension to the lease.
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<tr><th>Lender</th>
<th> Requirement
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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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>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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<h4> Get in touch with one of our Hedon lease extension solicitors or enfranchisement solicitors
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The conveyancers that we work with undertake Hedon 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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Hedon Lease Extension Case Summaries:
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<h5> Ryan, Hedon, East Yorkshire</h5>
<p> In recent months Ryan, came critically close to the 80-year threshold with the lease on his one bedroom apartment in Hedon. In buying his home two decades ago, the length of the lease was of minimal interest. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Ryan arranged for a lease extension just under the wire in August. Ryan and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £900.
<h5>Hedon case:</h5>
<p> Mr H Anderson acquired a newly refurbished apartment in Hedon in October 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Hedon with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out in 2106. Having 80 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
<h5>Hedon case:</h5>
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In 2014 we were called by Mrs Katie Laurent who, having completed a first floor flat in Hedon in October 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Hedon with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2095. Taking into account 69 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
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