Top reasons for St Pancras 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-pancras">St Pancras</a> leasehold property depreciates with the years remaining on the lease.
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St Pancras leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in St Pancras will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
<h4>Lenders may decide not to issue a mortgage with a short lease</h4>
The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.
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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>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in St Pancras lease extensions?
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<p> Using our service gives you better control over the value of your St Pancras leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
St Pancras Lease Extension Case Summaries:
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<h5> Amber, St Pancras, North London,</h5>
<p> Following unsuccessful correspondence with the landlord of her ground floor flat in St Pancras, Amber started the lease extension process just as the lease was coming close to the critical 80-year threshold. The transaction was concluded in April 2012. The freeholder’s costs were restricted to less than 450 pounds.
<h5>St Pancras case:</h5>
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Last Winter we were contacted by Mrs Chantelle Lambert , who
moved into a one bedroom apartment in St Pancras in January 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in St Pancras with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced annually. The lease finished on 14 June 2097. Given that there were 71 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
<div> <h5>Decision in Camden</h5>
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An example of a Lease Extension case for a St Pancras premises is
Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229.
This case was in relation to 1 flat. The unexpired residue of the current lease was 66.8 years.
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