Main reasons to start your Barbican lease extension
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Main reasons to start your Barbican lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/barbican">Barbican</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 set term of years. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Barbican. Inevitably, the term of lease left shortens over time. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Barbican have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before putting off your Barbican lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension <h4>Barbican property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Barbican with over 100 years unexpired 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it. <h4>Lending institutions may not finance a property on a short lease</h4> Banks and building societies are really restricting their approach as regards to homes in Barbican with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting the amount of prospective buyers.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</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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<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>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>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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What makes us experts in Barbican lease extensions?
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<p> Retaining our service will provide you increased control over the value of your Barbican leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Barbican Lease Extension Example Cases:
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<h5> Logan, Barbican, London</h5>
<p> In 2014 Logan, came critically close to the 80-year mark with the lease on his basement flat in Barbican. Having purchased his home 19 years previously, the length of the lease was of minimal concern. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Logan arranged for a lease extension just under the wire in March. Logan and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If he had missed the deadline, the premium would have gone up by at least £875.
<h5>Barbican case:</h5>
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In 2013 we were contacted by Mr and Mrs. Y Nelson who, having moved into a studio apartment in Barbican in May 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical properties in Barbican with an extended lease were valued around £176,200. The average amount of ground rent was £65 invoiced monthly. The lease expired on 7 February 2082. Given that there were 56 years left we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.
<div> <h5>Decision in Hackney</h5>
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An example of a Lease Extension decision for a Barbican flat is
137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00.
This case related to 2 flats. The number of years remaining on the existing lease(s) was 72.39 years.
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