Why you should start your St Ives lease extension
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Why you should start your St Ives lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/st-ives">St Ives</a> lease depreciates with the years remaining on the lease.
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<p> It’s an underpublicised certainty that a St Ives residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the St Ives property market.Where your lease has approximately 90 years left, 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 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in St Ives will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
<h4>St Ives property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
<h4>Banks and Building Societies may decide not to loan monies on a short lease</h4>
Most banks have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are regarded as inadequate for lending purposes.
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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>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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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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<h4> Get in touch with one of our St Ives lease extension solicitors or enfranchisement solicitors
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Lease extensions in St Ives can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with St Ives 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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St Ives Lease Extension Example Cases:
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<h5> Theo, St Ives, Cornwall,</h5>
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Theo owned a high value flat in St Ives on the market with a lease of just over 61 years outstanding. Theo informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.
<h5>St Ives case:</h5>
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Last month we were e-mailed by Ms V Ali , who
was assigned a lease of a first floor apartment in St Ives in August 2003. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative residencies in St Ives with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
<h5>St Ives case:</h5>
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In 2009 we were called by Mrs Jodie Wilson who, having took over the lease of a newly refurbished apartment in St Ives in August 2002. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical premises in St Ives with 100 year plus lease were worth £275,000. The average ground rent payable was £55 invoiced quarterly. The lease lapsed in 2103. Considering the 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.
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