Why you should start your South Kensington lease extension
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Main reasons to commence your South Kensington lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/south-kensington">South Kensington</a> lease depreciates with the years remaining on the lease.
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South Kensington residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
<h4>South Kensington property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in South Kensington with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it. <h4>Banks and Building Societies may decide not to issue a mortgage on a short lease</h4> Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This will be problematic once you wish to market or refinance your property as it will be practically unmortgageable. You may have no imminent plan to sell but when you do your purchaser must hold off for two years before they can exercise the right to a a lease extension.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start 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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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in South Kensington lease extensions?
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Lease extensions in South Kensington can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
<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 in-depth market knowledge dealing with South Kensington 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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South Kensington Lease Extension Case Summaries:
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<h5> Logan, South Kensington, West London,</h5>
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Logan was the the leasehold owner of a studio flat in South Kensington on the market with a lease of just over fifty eight years remaining. Logan informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
<h5>South Kensington case:</h5>
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In 2012 we were phoned by Mr and Mrs. F Cooper who, having acquired a one bedroom apartment in South Kensington in November 2011. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparable homes in South Kensington with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced yearly. The lease elapsed on 3 October 2095. Considering the 69 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
<div> <h5>Decision in Kensington and Chelsea</h5>
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An example of a Lease Extension decision for a South Kensington residence is
Flat 16 21/22 Stanhope Gardens in November 2010. the Leasehold Valuation Tribunal concluded that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, was £106,975
This case affected 1 flat. The unexpired term was 51.93 years.
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