Main reasons to start your Hook lease extension
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Main reasons to start your Hook lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/hook">Hook</a> property value </h4>
<p> There is no doubt about it a leasehold flat or house in Hook is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Hook will qualify for this right; that being said a lawyer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
<h4>Hook property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold residencies in Hook with over 100 years outstanding 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it. <h4>Lending institutions may not finance a property with a short lease</h4>
The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.
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<tr><th>Lender</th>
<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>Lloyds TSB Scotland</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 be at least 75 years plus the term of the mortgage at the outset 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>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 Hook lease extension solicitors or enfranchisement solicitors
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The conveyancers that we work with procure Hook 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 lawyer we work with provide it.
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Hook Lease Extension Example Cases:
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<h5> Archie, Hook, Hampshire</h5>
<p> Half a year ago Archie, started to get close to the eighty-year mark with the lease on his first floor flat in Hook. In buying his home 18 years previously, the length of the lease was of minimal relevance. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Archie arranged for a lease extension just under the wire last May. Archie and the landlord ultimately agreed on an amount of £5,000 . If the lease had dropped below 80 years, the price would have increased by a minimum £850.
<h5>Hook case:</h5>
<p> Ms Alice Sánchez was assigned a lease of a garden flat in Hook in January 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Hook with a long lease were worth £208,200. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2087. Given that there were 61 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.
<div> <h5>Decision in Kingston upon Thames</h5>
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An example of a Lease Extension case for a Hook premises is
Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00)
This case affected 1 flat.
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