Main reasons to start your Harlesden lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/harlesden">Harlesden</a> property value </h4>
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Harlesden leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Harlesden will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
<h4>Harlesden property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold residencies in Harlesden with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it. <h4>Mortgage lenders will not lend with a short lease</h4> Banks and building societies do not grant a mortgage on short residential leases. You most probably encounter problems if you want to sell your flat in Harlesden if the unexpired term of your lease is less than the criteria set by most lenders. Different lenders have varying requirements but on the whole theyrequire an unexpired term of at least seventy years.
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<tr><th>Lender</th>
<th> Requirement
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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>Coventry Building Society</td>
<td> A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
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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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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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 Harlesden lease extension solicitors or enfranchisement solicitors
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<p> Using our service will provide you better control over the value of your Harlesden leasehold, as your property will be more valuable and marketable in respect 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>
Harlesden Lease Extension Case Summaries:
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<h5> Oscar, Harlesden, North West London,</h5>
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Oscar owned a conversion apartment in Harlesden being marketed with a lease of a little over fifty eight years left. Oscar informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and secured an acceptable resolution informally and sell the flat.
<h5>Harlesden case:</h5>
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Last year we were approach by Mr Jude Miller , who
was assigned a lease of a basement flat in Harlesden in May 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Harlesden with 100 year plus lease were valued around £173,800. The mid-range ground rent payable was £60 invoiced per annum. The lease finished on 24 February 2081. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
<div> <h5>Decision in Brent</h5>
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An example of a Lease Extension matter before the tribunal for a Harlesden premises is
First Floor Flat 2B Fortune Gate Road in May 2013. the tribunal decided that the price payable for the lease extension was
£9,331, together with £900 in respect of outstanding ground rent.
This case affected 1 flat. The unexpired term was 74.31 years.
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