Top reasons for Islington 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/islington">Islington</a> property value </h4>
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Islington leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Leasehold owners in Islington will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
<h4>Islington property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
<h4>Mortgage lenders may decide not to grant a mortgage on a short lease</h4> Lending institutions have set criteria when loaning monies secured on leasehold property. Some will simply not lend at all once an unexpired lease term falls beneath a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than seventy years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your Islington home.
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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>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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What makes us experts in Islington lease extensions?
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The conveyancing solicitors that we work with undertake Islington 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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Islington Lease Extension Case Summaries:
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<h5> George, Islington, North London</h5>
<p> During the course of the last few months George, started to get near to the eighty-year threshold with the lease on his studio flat in Islington. In buying his home 19 years ago, the length of the lease was of no importance. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. George arranged for a lease extension just in the nick of time in June. George and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £900.
<h5>Islington case:</h5>
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Last Autumn we were contacted by Mr and Mrs. N Bernard , who
moved into a first floor flat in Islington in April 1997. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical properties in Islington with an extended lease were worth £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated on 4 June 2097. Given that there were 71 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
<div> <h5>Decision in Hackney</h5>
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An example of a Lease Extension matter before the tribunal for a Islington premises is
5C Stoke Newington Road in April 2010. the Tribunal therefore concludes that the premium to be paid for the
extended lease is £700.00
This case related to 1 flat. The unexpired term as at the valuation date was 80.5 years.
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