Main reasons to commence your Dalston 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/dalston">Dalston</a> leasehold property depreciates with the years remaining on the lease.
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<p> The re-sale value of a leasehold property in Dalston depends on how many years the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation enables Dalston qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension. <h4>Dalston property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
<h4>Lending institutions may not loan monies on a short lease</h4> The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic as and when you wish to sell or refinance your property as it will be practically unmortgageable. Even though you may not have an imminent intention to sell but when you do your purchaser will need to wait 2 years before they can start the legal procedures for a lease extension.
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<tr><th>Lender</th>
<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>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>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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Why use us for your lease extension in Dalston? </h4>
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The conveyancers that we work with undertake Dalston 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 conveyancing solicitor we work with provide it.
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Dalston Lease Extension Example Cases:
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<h5> Leah, Dalston, London,</h5>
<p> Following lengthy discussions with the freeholder of her leasehold flat in Dalston, Leah initiated the lease extension process as the 80 year mark was swiftly advancing. The legal work completed in March 2012. The freeholder’s fees were kept to an absolute minimum.
<h5>Dalston case:</h5>
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Last April we were phoned by Mr C Nguyen , who
owned a ground floor flat in Dalston in April 2003. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Similar homes in Dalston with an extended lease were valued around £275,000. The average ground rent payable was £65 invoiced annually. The lease concluded on 23 November 2094. Considering the 68 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
<div> <h5>Decision in Hackney</h5>
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An example of a Freehold Enfranchisement case for a Dalston property is
150 Amhurst Road in December 2013. The tribunal concluded that the premium to be paid by the applicant for the enfranchisement of the subject property was £43,500.
This case related to 4 flats. The unexpired term as at the valuation date was 90 (or thereabouts).
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