Why you should start your Sudbury lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/sudbury">Sudbury</a> leasehold property depreciates with the years remaining on the lease.
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<p> Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sudbury. Clearly, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Sudbury have the right to extend the lease for an additional ninety years in accordance with statute. You should give careful attention before putting off your Sudbury lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Sudbury 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it. <h4>Lenders may decide not to lend on a short lease</h4> Banks and building societies do not like short residential leases. You most probably encounter problems where you want to sell your flat in Sudbury if the remaining lease term is less than the criteria set by the majority of mortgage companies. Different lenders have different requirements but generally theyrequire an unexpired term of at least 65 years.
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<tr><th>Lender</th>
<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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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>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>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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What makes us experts in Sudbury lease extensions?
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The conveyancing solicitors that we work with undertake Sudbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
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Sudbury Lease Extension Case Studies:
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<h5> Charlie, Sudbury, Suffolk,</h5>
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Charlie was the the leasehold proprietor of a studio apartment in Sudbury on the market with a lease of fraction over 61 years outstanding. Charlie on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
<h5>Sudbury case:</h5>
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Last March we were e-mailed by Mr M Cox , who
moved into a recently refurbished apartment in Sudbury in July 2007. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative flats in Sudbury with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed yearly. The lease ran out on 25 May 2105. Taking into account 79 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
<div> <h5>Decision in Brent</h5>
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An example of a Lease Extension decision for a Sudbury premises is
Ground Floor Flat 79 London Road in September 2012. the Tribunal held that the premium payable for the lease extension should be £7,636
This case affected 1 flat. The unexpired residue of the current lease was 74 years.
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