Top reasons for Poplar lease extension
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Why you should commence your Poplar lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/poplar">Poplar</a> property value </h4>
<p> The only way is down when it comes to Poplar lease terms.
Poplar flats that have a remaining term fewer than eighty years will drop in value even faster,
and the cost of extending your lease will increase.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold premises in Poplar with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it. <h4>Lenders will not lend on a short lease</h4> Banks and Building Societies have set criteria when lending funds charged on leasehold property. Many will simply refuse lend at all once the remaining lease term slips below a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Poplar 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>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>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>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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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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<h4> Get in touch with one of our Poplar lease extension solicitors or enfranchisement solicitors
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<p> Retaining our service will provide you increased control over the value of your Poplar leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Poplar Lease Extension Example Cases:
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<h5> Elijah, Poplar, London</h5>
<p> In recent months Elijah, came precariously close to the eighty-year threshold with the lease on his garden apartment in Poplar. In buying his home twenty years previously, the lease term was of no relevance. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Elijah arranged for a lease extension just ahead of time in June. Elijah and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £1,150.
<h5>Poplar case:</h5>
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Last year we were called by Mr and Mrs. L Reed , who
was assigned a lease of a one bedroom apartment in Poplar in January 2006. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Poplar with a long lease were worth £260,000. The average amount of ground rent was £50 collected monthly. The lease concluded on 15 June 2098. Having 72 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
<div> <h5>Decision in Southwark</h5>
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An example of a Freehold Enfranchisement matter before the tribunal for a Poplar residence is
12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the
acquisition of the freehold to the subject premises was the sum
of £18,300
This case related to 3 flats. The number of years remaining on the existing lease(s) was 101.61 years.
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