Top reasons for St Leonard Shoreditch lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/st-leonard-shoreditch">St Leonard Shoreditch</a> lease depreciates with the years remaining on the lease.
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St Leonard Shoreditch leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in St Leonard Shoreditch will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold properties in St Leonard Shoreditch with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lenders may decide not to loan monies with a short lease</h4> Mortgage lenders are less likely to grant a mortgage on a domestic flat in St Leonard Shoreditch with a short lease. Some lenders simply refuse a mortgage on leases with below 75 years remaining.
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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>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>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>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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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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What makes us experts in St Leonard Shoreditch lease extensions?
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<p> Regardless of whether you are a tenant or a landlord in St Leonard Shoreditch,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with St Leonard Shoreditch valuers.
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St Leonard Shoreditch Lease Extension Example Cases:
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<h5> Benjamin, St Leonard Shoreditch, London,</h5>
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Benjamin was the the leasehold proprietor of a conversion apartment in St Leonard Shoreditch on the market with a lease of a little over sixty years outstanding. Benjamin on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
<h5>St Leonard Shoreditch case:</h5>
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Last Autumn we were e-mailed by Mrs Katherine Taylor , who
completed a one bedroom apartment in St Leonard Shoreditch in November 2011. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in St Leonard Shoreditch with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed per annum. The lease concluded on 2 May 2102. Considering the 76 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
<div> <h5>Decision in Hackney</h5>
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An example of a Lease Extension decision for a St Leonard Shoreditch flat is
137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00.
This case affected 2 flats. The unexpired term as at the valuation date was 72.39 years.
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