Why you should start your Long Eaton lease extension
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Why you should commence your Long Eaton lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/long-eaton">Long Eaton</a> leasehold property depreciates with the years remaining on the lease.
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Long Eaton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Long Eaton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Long Eaton you should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Long Eaton flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
<h4>Lending institutions will not finance a property on a short lease</h4> The definition of a short lease varies by mortgage company, yet mortgage lenders start to become jittery at around 75 years. This will be problematic once you wish to dispose of or remortgage your property as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your buyer will have to wait a couple of years before being able to exercise the right to a a lease extension.
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<tr><th>Lender</th>
<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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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>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>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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Why use us for your lease extension in Long Eaton? </h4>
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The conveyancing solicitors that we work with handle Long Eaton 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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Long Eaton Lease Extension Case Studies:
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<h5> Toby, Long Eaton, Derbyshire,</h5>
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Toby was the the leasehold owner of a studio flat in Long Eaton being sold with a lease of a little over 61 years remaining. Toby informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.
<h5>Long Eaton case:</h5>
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Last year we were contacted by Mr Jake Moore , who
bought a recently refurbished apartment in Long Eaton in July 2002. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Long Eaton with 100 year plus lease were valued around £260,200. The mid-range ground rent payable was £65 billed monthly. The lease terminated in 2092. Given that there were 66 years unexpired we calculated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of fees.
<h5>Long Eaton case:</h5>
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Last Christmas we were contacted by Dr U Johnson , who
took over the lease of a studio flat in Long Eaton in February 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical premises in Long Eaton with 100 year plus lease were valued around £198,800. The mid-range ground rent payable was £55 collected per annum. The lease concluded in 2081. Considering the 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
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