Main reasons to start your Canvey Island lease extension
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Why you should commence your Canvey Island lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/canvey-island">Canvey Island</a> lease depreciates with the years remaining on the lease.
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Canvey Island leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Canvey Island will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
<h4>Canvey Island property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
<h4>Lending institutions may decide not to grant a mortgage with a short lease</h4>
The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.
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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>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>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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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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 Canvey Island lease extensions?
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Lease extensions in Canvey Island can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
<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 a wealth of experience procuring Canvey Island 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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Canvey Island Lease Extension Case Studies:
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<h5> Harry, Canvey Island, Essex</h5>
<p> Last October Harry, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Canvey Island. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he noticed he needed to take action soon on Extending the lease. Harry extended the lease just in the nick of time in September. Harry and the freeholder ultimately agreed on a premium of £6,000 . If he not met the deadline, the amount would have escalated by at least £875.
<h5>Canvey Island case:</h5>
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In 2010 we were contacted by Mr and Mrs. V Martin who, having took over the lease of a recently refurbished apartment in Canvey Island in June 2011. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical homes in Canvey Island with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished in 2089. Considering the 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of fees.
<h5>Canvey Island case:</h5>
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Last year we were called by Mrs H Kelly , who
completed a ground floor apartment in Canvey Island in May 2001. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative properties in Canvey Island with an extended lease were worth £181,600. The average ground rent payable was £55 billed per annum. The lease ended on 6 August 2078. Taking into account 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.
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