Top reasons for Loughton lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/loughton">Loughton</a> lease depreciates with the years remaining on the lease.
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<p> The market value of Loughton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than eighty years
<h4>Loughton property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Loughton with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it. <h4>Lenders may not finance a property with a short lease</h4> Most mortgage lenders insist on a lengthy amount of time left on any leasehold property before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be aware that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so if they can't secure a mortgage, then the market price of your property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on <p>
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<th> Requirement
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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>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>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>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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Why use us for your lease extension in Loughton? </h4>
<p> Using our service will provide you enhanced control over the value of your Loughton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell.
The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Loughton Lease Extension Example Cases:
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<h5> Georgia, Loughton, Essex,</h5>
<p> Following protracted correspondence with the landlord of her purpose-built apartment in Loughton, Georgia initiated the lease extension process as the 80 year mark was fast nearing. The transaction completed in October 2008. The landlord’s fees were kept to an absolute minimum.
<h5>Loughton case:</h5>
<p> Ms Isabelle Baker moved into a studio flat in Loughton in August 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical flats in Loughton with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2080. Considering the 54 years left we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.
<div> <h5>Decision in Redbridge</h5>
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An example of a Freehold Enfranchisement decision for a Loughton property is
201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071.
This case related to 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.
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