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 also be not less than 75 years 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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<h4> Get in touch with one of our St Leonard Shoreditch lease extension solicitors or enfranchisement solicitors
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The lawyers that we work with handle St Leonard Shoreditch 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 conveyancer we work with provide it.
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St Leonard Shoreditch Lease Extension Example Cases:
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<h5> Eliot, St Leonard Shoreditch, London</h5>
<p> In recent months Eliot, started to get close to the 80-year threshold with the lease on his ground floor apartment in St Leonard Shoreditch. Having bought his home two decades ago, the lease term was of no importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Eliot was able to extend his lease at the eleventh hour in September. Eliot and the freeholder via the management company subsequently settled on sum of £5,000 . If the lease had dipped lower than 80 years, the figure would have escalated by at least £1,075.
<h5>St Leonard Shoreditch case:</h5>
<p> Ms Melissa Díaz acquired a first floor flat in St Leonard Shoreditch in July 2006. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative properties in St Leonard Shoreditch with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease termination date was on 5 June 2102. Considering the 76 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
<div> <h5>Decision in Hackney</h5>
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An example of a Lease Extension case for a St Leonard Shoreditch residence 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 was in relation to 2 flats. The remaining number of years on the lease was 72.39 years.
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