Why you should commence your Chelsfield lease extension
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Main reasons to start your Chelsfield lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/chelsfield">Chelsfield</a> lease depreciates with the years remaining on the lease.
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<p> Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chelsfield. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Chelsfield have the right to extend the lease for a further 90 years under statute. You should give careful attention before putting off your Chelsfield lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease <h4>Chelsfield property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
<h4>Lenders may decide not to finance a property with a short lease</h4> Many banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will consider it as adequate security. Even if you don't require a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to acquire your property in the future might well do, so if they can't secure a mortgage, then the financial worth of the property will likely suffer. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on <p>
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<th> Requirement
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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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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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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>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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<h4> Get in touch with one of our Chelsfield lease extension solicitors or enfranchisement solicitors
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The conveyancing solicitors that we work with undertake Chelsfield 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 lawyer we work with provide it.
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Chelsfield Lease Extension Example Cases:
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<h5> Teddy, Chelsfield, South East London</h5>
<p> During the course of the last few months Teddy, started to get near to the eighty-year mark with the lease on his one bedroom flat in Chelsfield. In buying his flat twenty years ago, the length of the lease was of no relevance. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Teddy extended the lease at the eleventh hour in April. Teddy and the freeholder eventually agreed on a premium of £6,000 . If the lease had slid lower than eighty years, the figure would have gone up by at least £1,050.
<h5>Chelsfield case:</h5>
<p> Mr T Howard moved into a basement flat in Chelsfield in July 2000. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical homes in Chelsfield with a long lease were valued around £260,200. The average amount of ground rent was £65 collected quarterly. The lease expired in 2092. Given that there were 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.
<div> <h5>Decision in Bromley</h5>
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An example of a Lease Extension decision for a Chelsfield premises is
1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be
paid by the tenant on the grant of a new lease, in accordance with
section 56 and Schedule 13 of the Leasehold Reform, Housing and
Urban Development Act 1993 was £30,541
This case related to 1 flat. The unexpired term was 50.57 years.
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