Main reasons to commence your Mayfair lease extension
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Main reasons to commence your Mayfair lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/mayfair">Mayfair</a> property value </h4>
<p> When it comes to residential leasehold property in Mayfair, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Anyone in Mayfair with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due. <h4>Mayfair property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
<h4>Mortgage lenders will not issue a mortgage on a short lease</h4>
Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as insufficient for lending purposes.
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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>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Coventry Building Society</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>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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<h4>
What makes us experts in Mayfair lease extensions?
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<p> Irrespective of whether you are a tenant or a landlord in Mayfair,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mayfair valuers.
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Mayfair Lease Extension Case Studies:
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<h5> Ibrahim, Mayfair, London,</h5>
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Ibrahim owned a 2 bedroom flat in Mayfair being marketed with a lease of a few days over 59 years outstanding. Ibrahim on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
<h5>Mayfair case:</h5>
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Last Christmas we were e-mailed by Mr and Mrs. D Morris , who
took over the lease of a garden apartment in Mayfair in June 2007. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in Mayfair with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 12 April 2078. Given that there were 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of expenses.
<div> <h5>Decision in Westminster</h5>
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An example of a Lease Extension matter before the tribunal for a Mayfair property is
Flat 1 3 Upper Belgrave Street in December 2010. The Tribunal determined that the price payablefor the Lease extension in respect of
the subject premises was £2,202,007
This case was in relation to 1 flat. The unexpired residue of the current lease was 21 years.
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