Top reasons for Kensington 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/kensington">Kensington</a> property value </h4>
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Kensington leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Kensington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
<h4>Kensington property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
<h4>Mortgage lenders will not loan monies on a short lease</h4> Most banks and building societies insist on a lengthy amount of time left on any leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone wanting to purchase your property in the future might well do, so in the event that they are not able to get a mortgage, then the market price of the property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to lend on <p>
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<tr><th>Lender</th>
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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>Leeds Building Society</td>
<td> 85 years remaining from the start 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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What makes us experts in Kensington lease extensions?
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<p> Using our service will provide you better control over the value of your Kensington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell.
The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Kensington Lease Extension Example Cases:
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<h5> Kian, Kensington, West London</h5>
<p> Two years ago Kian, came perilously near to the 80-year mark with the lease on his studio flat in Kensington. Having bought his property 18 years previously, the lease term was of no relevance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Kian extended the lease just in the nick of time last September. Kian and the landlord subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £1,000.
<h5>Kensington case:</h5>
<p> Mr and Mrs. F Morgan bought a purpose-built flat in Kensington in November 2010. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Similar properties in Kensington with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 8 June 2101. Having 75 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
<div> <h5>Decision in Kensington and Chelsea</h5>
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An example of a Lease Extension decision for a Kensington residence is
93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease
was £492,083,
This case related to 1 flat. The remaining number of years on the lease was 37.79 years.
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