Why you should start your Mottingham 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/mottingham">Mottingham</a> lease depreciates with the years remaining on the lease.
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<p> Unfortunately that a Mottingham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Mottingham property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops below 80 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. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Mottingham will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
<h4>Mottingham property with a lease extension is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
<h4>Mortgage lenders will not finance a property on a short lease</h4>
Most mortgage lenders have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are regarded as inadequate for lending purposes.
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<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>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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date 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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<h4> Get in touch with one of our Mottingham lease extension solicitors or enfranchisement solicitors
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Lease extensions in Mottingham can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Mottingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Mottingham Lease Extension Case Summaries:
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<h5> Zoe, Mottingham, South East London,</h5>
<p> In the wake of 6 months of unsuccessful correspondence with the landlord of her first floor apartment in Mottingham, Zoe started the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in June 2005. The landlord’s charges were negotiated to approximately 500 pounds.
<h5>Mottingham case:</h5>
<p> Dr G Cooper acquired a basement apartment in Mottingham in October 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Mottingham with a long lease were worth £225,800. The mid-range amount of ground rent was £60 billed annually. The lease expired on 24 October 2086. Taking into account 60 years remaining we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.
<div> <h5>Decision in Lewisham</h5>
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An example of a Lease Extension decision for a Mottingham property is
49 Woodstock Court Burnt Ash Hill in May 2012. the payment of £64,116 by the leaseholder was the premium which the Tribunal found due for the lease extension in this case.
This case affected 1 flat. The remaining number of years on the lease was 23.26 years.
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