Top reasons for Shenfield lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/shenfield">Shenfield</a> property value </h4>
<p> It’s a harsh truth that a Shenfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Shenfield property prices.Once your lease nears 85ish years, you should start thinking about 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 under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Shenfield will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Shenfield with in excess of one hundred years outstanding on the lease are sometimes 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 freehold unless savings on ground rent and estate charges merit it. <h4>Lending institutions will not loan monies on a short lease</h4> Almost all mortgage lenders require a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be aware that it is likely that someone intending to purchase your property in the future might well do, so where they can't obtain a mortgage, then the financial worth of your property will likely suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are prepared to accept <p>
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<tr><th>Lender</th>
<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>Birmingham Midshires</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>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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Why use us for your lease extension in Shenfield? </h4>
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The conveyancing solicitors that we work with procure Shenfield 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 conveyancing solicitor we work with provide it.
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Shenfield Lease Extension Case Studies:
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<h5> Olivia, Shenfield, Essex,</h5>
<p> Subsequent to unsuccessful negotiations with the landlord of her leasehold flat in Shenfield, Olivia initiated the lease extension process as the 80 year threshold was swiftly advancing. The transaction completed in August 2015. The freeholder’s fees were kept to an absolute minimum.
<h5>Shenfield case:</h5>
<p> Dr Michael Nguyen acquired a garden apartment in Shenfield in September 2010. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative homes in Shenfield with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 billed quarterly. The lease expired on 27 February 2106. Considering the 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
<h5>Shenfield case:</h5>
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In 2012 we were e-mailed by Mr and Mrs. S Bell who, having completed a one bedroom flat in Shenfield in April 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Shenfield with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 billed every twelve months. The lease concluded in 2086. Given that there were 60 years unexpired we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.
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