Main reasons to start your South Woodford lease extension
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Main reasons to start your South Woodford lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/south-woodford">South Woodford</a> lease depreciates with the years remaining on the lease.
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<p> Unfortunately that a South Woodford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the South Woodford property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in South Woodford will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in South Woodford with over 100 years remaining 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Banks and Building Societies may not grant a mortgage with a short lease</h4> Mortgage lenders are less likely to give a mortgage on a domestic flat in South Woodford with a short lease. Many lenders simply refuse to lend on leases with below 75 years left.
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<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>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>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>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 South Woodford lease extension solicitors or enfranchisement solicitors
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Lease extensions in South Woodford can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 in-depth market knowledge dealing with South Woodford 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 Woodford Lease Extension Case Summaries:
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<h5> Natasha, South Woodford, North East London,</h5>
<p> Trailing unsuccessful negotiations with the landlord of her ground floor flat in South Woodford, Natasha initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was finalised in March 2009. The freeholder’s costs were restricted to less than six hundred GBP.
<h5>South Woodford case:</h5>
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Last Winter we were phoned by Mr and Mrs. N Williams , who
bought a garden apartment in South Woodford in July 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in South Woodford with an extended lease were worth £260,000. The average ground rent payable was £50 collected quarterly. The lease finished on 24 August 2098. Considering the 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
<div> <h5>Decision in Redbridge</h5>
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An example of a Lease Extension decision for a South Woodford flat is
135 Maybank Road in January 2013. The Tribunal determined that the price to be paid by the tenants for the grant of a new lease is £10,592
This case was in relation to 1 flat. The unexpired term was 71.2 years.
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