Top reasons for Seven Sisters lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to commence your Seven Sisters lease extension today:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/seven-sisters">Seven Sisters</a> lease depreciates with the years remaining on the lease.
</h4>
<p> There is no doubt about it a leasehold flat or house in Seven Sisters is a wasting asset as a result of the shortening lease. If the residual term has, beyond 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Seven Sisters will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
<h4>Banks and Building Societies may not issue a mortgage on a short lease</h4>
The trend since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<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.
</tr>
<tr>
<td>Chelsea 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.
</tr>
<tr>
<td>Godiva Mortgages</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.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<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.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
What makes us experts in Seven Sisters lease extensions?
</h4>
<p>
The conveyancers that we work with handle Seven Sisters 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.
<h4>
Seven Sisters Lease Extension Example Cases:
</h4>
<h5> Hugo, Seven Sisters, Baglan,</h5>
<p>
Hugo was the the leasehold owner of a high value flat in Seven Sisters being marketed with a lease of just over 61 years left. Hugo on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
<h5>Seven Sisters case:</h5>
<p>
Last Christmas we were approach by Mrs Jordan Jones , who
completed a newly refurbished apartment in Seven Sisters in September 2011. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Seven Sisters with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2104. Having 78 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of expenses.
<div> <h5>Decision in Haringey</h5>
<p>
An example of a Freehold Enfranchisement matter before the tribunal for a Seven Sisters flat is
22 Wakefield Road in January 2012. Following a vesting order Clerkenwell
and Shoreditch County Court under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993 on 9th May 2011 the Tribunal decided that the price that the Applicant for the freehold interest should pay is £17,400
This case was in relation to 2 flats. The unexpired lease term was 74.13 years.
</p>
</div>
</div>