Why you should start your South West London lease extension
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Why you should start your South West London lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/south-west-london">South West London</a> property value </h4>
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South West London leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in South West London will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
<h4>South West London property with a lease extension is almost the same value as a freehold</h4>
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Leasehold premises in South West London with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it. <h4>Banks and Building Societies will not grant a mortgage with a short lease</h4> Mortgage Lenders vary in their lending criteria. Some draw the line at 75 years remaining on the lease; others may be happy with anything over seventy years. With less than sixty years, it may be impossible to obtain a mortgage in the first place.
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<th> Requirement
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<td>Bank of Scotland</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>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 South West London lease extension solicitors or enfranchisement solicitors
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<p> Regardless of whether you are a tenant or a landlord in South West London,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South West London valuers.
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South West London Lease Extension Example Cases:
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<h5> James, South West London, London</h5>
<p> During the course of the last few months James, started to get close to the 80-year mark with the lease on his purpose- built flat in South West London. In buying his flat two decades ago, the lease term was of minimal concern. by good luck, he became aware that he needed to take action soon on a lease extension. James extended the lease just ahead of time in June. James and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the price would have become more costly by at least £900.
<h5>South West London case:</h5>
<p> Mr Leo Sharif took over the lease of a studio apartment in South West London in May 2010. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical premises in South West London with 100 year plus lease were worth £265,200. The average ground rent payable was £65 billed per annum. The lease finished on 21 September 2092. Given that there were 66 years unexpired we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus legals.
<div> <h5>Decision in Waltham Forest</h5>
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An example of a Freehold Enfranchisement decision for a South West London flat is
78 & 80 Newport Road in January 2013. the Tribunal concluded that the premium to be paid by the leaseholder in respect of the freehold reversion is £23,105
This case was in relation to 2 flats. The unexpired term as at the valuation date was 71.63 years.
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