Main reasons to commence your Waltham Abbey lease extension
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Main reasons to commence your Waltham Abbey lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/waltham-abbey">Waltham Abbey</a> leasehold property depreciates with the years remaining on the lease.
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Waltham Abbey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Waltham Abbey tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Waltham Abbey you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Waltham Abbey leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay <h4>Waltham Abbey property with a lease extension is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
<h4>Lenders may decide not to grant a mortgage on a short lease</h4> The definition of a short lease varies by mortgage company, yet lending institutions start to become nervous at around 75 years. This may cause difficulties once you need to dispose of or remortgage your property as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your purchaser must wait two years before being able to exercise the right to a an extension to the lease.
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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>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>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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date 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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<h4> Get in touch with one of our Waltham Abbey lease extension solicitors or enfranchisement solicitors
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<p> Irrespective of whether you are a tenant or a landlord in Waltham Abbey,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Waltham Abbey valuers.
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Waltham Abbey Lease Extension Example Cases:
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<h5> Katie, Waltham Abbey, Essex,</h5>
<p> In the wake of eight months of unsuccessful correspondence with the freeholder of her leasehold flat in Waltham Abbey, Katie initiated the lease extension process as the 80 year mark was swiftly advancing. The legal work was concluded in October 2010. The freeholder’s charges were kept to an absolute minimum.
<h5>Waltham Abbey case:</h5>
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Last Autumn we were called by Dr C Moore , who
owned a recently refurbished flat in Waltham Abbey in June 1997. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Waltham Abbey with a long lease were in the region of £295,000. The average ground rent payable was £45 collected monthly. The lease expired in 2100. Taking into account 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
<div> <h5>Decision in Redbridge</h5>
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An example of a Freehold Enfranchisement matter before the tribunal for a Waltham Abbey property is
201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071.
This case affected 2 flats. The unexpired lease term was 69.26 years.
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