Top reasons for Ladywell lease extension
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Why you should commence your Ladywell lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/ladywell">Ladywell</a> property value </h4>
<p> With a long leasehold premises in Ladywell, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years left. Residents in Ladywell with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has below eighty years left, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable. <h4>Ladywell property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Ladywell with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it. <h4>Banks and Building Societies will not issue a mortgage on a short lease</h4> Lenders do not lend on short residential leases. You are likely to experience problems where you want to sell your flat in Ladywell if the remaining term of your lease is less than the criteria set by the majority of banks and building societies. Different lenders have varying requirements but generally they are looking for an unexpired term of at least seventy years.
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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>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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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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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Why use us for your lease extension in Ladywell? </h4>
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The conveyancing solicitors that we work with handle Ladywell 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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Ladywell Lease Extension Case Studies:
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<h5> Edward, Ladywell, South East London,</h5>
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Edward was the the leasehold proprietor of a high value flat in Ladywell on the market with a lease of a few days over 72 years outstanding. Edward on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Edward to exercise his statutory right. Edward procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
<h5>Ladywell case:</h5>
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Last July we were phoned by Mr and Mrs. C Sánchez , who
bought a basement apartment in Ladywell in May 2000. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical flats in Ladywell with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed yearly. The lease concluded in 2083. Having 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
<div> <h5>Decision in Lewisham</h5>
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An example of a Freehold Enfranchisement matter before the tribunal for a Ladywell residence is
44 Elmer Road in January 2013. The Tribunal dacied that amount to be paid by the Leaseholders for the Landlords freehold reversion was £12,951 as at the valuation date (20" September 2012).This matter was referred back to the Bromley County Court to deal with costs, fees and any other outstanding matters.
This case related to 2 flats. The unexpired residue of the current lease was 74.25 years.
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