Top reasons for Darley Abbey lease extension
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Why you should start your Darley Abbey lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/darley-abbey">Darley Abbey</a> leasehold property depreciates with the years remaining on the lease.
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<p> It’s an underpublicised truth that a Darley Abbey residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Darley Abbey property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Darley Abbey will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Darley Abbey with over one hundred years outstanding on the lease are often referred to as ‘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 service charges justify it. <h4>Lending institutions will not loan monies on a short lease</h4> Mortgage lenders are less likely to give a loan offer on a domestic property in Darley Abbey with a short lease. Some lenders simply refuse to lend on leases with less than 75 years remaining.
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<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>Chelsea 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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<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>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>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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Why use us for your lease extension in Darley Abbey? </h4>
<p> Regardless of whether you are a tenant or a landlord in Darley 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 Darley Abbey valuers.
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Darley Abbey Lease Extension Example Cases:
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<h5> Naomi, Darley Abbey, Derbyshire,</h5>
<p> After protracted discussions with the freeholder of her one bedroom flat in Darley Abbey, Naomi commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was concluded in January 2015. The landlord’s fees were restricted to below 500 GBP.
<h5>Darley Abbey case:</h5>
<p> Mr Joseph Clarke took over the lease of a garden flat in Darley Abbey in July 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Darley Abbey with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 collected annually. The lease ended in 2106. Taking into account 80 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
<h5>Darley Abbey case:</h5>
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Last Winter we were e-mailed by Dr K Khan , who
purchased a one bedroom flat in Darley Abbey in April 1998. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical premises in Darley Abbey with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed in 2095. Given that there were 69 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
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