Why you should start your Old Ford 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/old-ford">Old Ford</a> leasehold property depreciates with the years remaining on the lease.
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Old Ford 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 the lease becomes more expensive. The majority of owners of residential leasehold property in Old Ford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Old Ford you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold properties in Old Ford with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it. <h4>Lenders may decide not to issue a mortgage on a short lease</h4>
Most banks have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be deficient 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>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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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>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 Old Ford lease extensions?
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Lease extensions in Old Ford can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 a wealth of experience procuring Old Ford 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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Old Ford Lease Extension Example Cases:
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<h5> Milo, Old Ford, London</h5>
<p> In 2014 Milo, started to get near to the eighty-year mark with the lease on his ground floor flat in Old Ford. In buying his home two decades ago, the lease term was of no bearing. Thankfully, he noticed he needed to take steps soon on Extending the lease. Milo arranged for a lease extension just ahead of time last April. Milo and the freeholder via the managing agents in the end settled on sum of £5,500 . If he failed to meet the deadline, the price would have become more costly by a minimum £850.
<h5>Old Ford case:</h5>
<p> Mr and Mrs. R Collins bought a ground floor apartment in Old Ford in January 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Old Ford with an extended lease were worth £246,800. The average amount of ground rent was £60 billed every twelve months. The lease finished in 2076. Given that there were 50 years outstanding we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.
<div> <h5>Decision in Tower Hamlets</h5>
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An example of a Freehold Enfranchisement matter before the tribunal for a Old Ford premises is
26 Rhondda Grove in June 2009. The net price payable by the leaseholders as determined by the Tribunal was £3,015.13. This comprised £11,300 premium for the reversion less £8,284.87 costs as ordered by the County Court.
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