Why you should commence your Mile End lease extension
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Why you should commence your Mile End lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/mile-end">Mile End</a> property value </h4>
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Mile End leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Flat owners in Mile End will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
<h4>Mile End property with a lease extension is almost the same value as a freehold</h4>
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Leasehold residencies in Mile End with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Lending institutions may not finance a property with a short lease</h4> Banks and Building Societies have set criteria when lending monies secured on leasehold homes. Some will simply not lend at all once an unexpired lease term slips under a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are intending to refinance your Mile End home.
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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>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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<h4> Get in touch with one of our Mile End lease extension solicitors or enfranchisement solicitors
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Lease extensions in Mile End can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mile End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Mile End Lease Extension Example Cases:
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<h5> Elijah, Mile End, London</h5>
<p> Two years ago Elijah, came very close to the 80-year mark with the lease on his first floor flat in Mile End. Having bought his flat two decades ago, the lease term was of little importance. As luck would have it, he realised he needed to take action soon on a lease extension. Elijah extended the lease just ahead of time in August. Elijah and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had gone to less than 80 years, the premium would have increased by a minimum £850.
<h5>Mile End case:</h5>
<p> Mrs Emma Stewart bought a garden flat in Mile End in May 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Mile End with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed monthly. The lease ended on 18 November 2098. Taking into account 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.
<div> <h5>Decision in Tower Hamlets</h5>
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An example of a Freehold Enfranchisement decision for a Mile End flat is
26 Rhondda Grove in June 2009. The net price payable by the leaseholders as determined by the Tribunal was £3,015.13. This comprised £11,300 premium for the reversion less £8,284.87 costs as ordered by the County Court.
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