Top reasons for Soho lease extension
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Main reasons to start your Soho lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/soho">Soho</a> leasehold property depreciates with the years remaining on the lease.
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<p> As the length of the unexpired term of a Soho residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Soho will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
<h4>Soho property with a lease extension is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
<h4>Lending institutions may not loan monies with a short lease</h4> Banks and building societies are really restricting their approach as regards to homes in Soho with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of prospective purchasers.
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<tr><th>Lender</th>
<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>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>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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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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 Soho lease extension solicitors or enfranchisement solicitors
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<p> Retaining our service will provide you increased control over the value of your Soho leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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>
Soho Lease Extension Example Cases:
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<h5> Lucas, Soho, London,</h5>
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Lucas was the the leasehold proprietor of a studio apartment in Soho on the market with a lease of fraction over fifty eight years remaining. Lucas informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
<h5>Soho case:</h5>
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In 2010 we were e-mailed by Ms C Lefèvre who, having moved into a newly refurbished apartment in Soho in April 1997. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical homes in Soho with 100 year plus lease were valued around £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease finished on 20 October 2079. Considering the 53 years as a residual term we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
<div> <h5>Decision in Hounslow</h5>
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An example of a Freehold Enfranchisement case for a Soho flat is
20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the
Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A
This case was in relation to 1 flat. The unexpired term was 73.26 years.
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