Main reasons to start your Brighouse lease extension
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Main reasons to commence your Brighouse lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/brighouse">Brighouse</a> leasehold property depreciates with the years remaining on the lease.
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<p> The value of Brighouse leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than 80 years
<h4>Brighouse property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Brighouse with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it. <h4>Banks and Building Societies may not finance a property on a short lease</h4> Almost all banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so if they can't obtain a mortgage, then the financial worth of the property will likely be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to accept <p>
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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>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.
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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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What makes us experts in Brighouse lease extensions?
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The conveyancers that we work with procure Brighouse 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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Brighouse Lease Extension Case Studies:
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<h5> Finn, Brighouse, West Yorkshire,</h5>
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Finn owned a studio apartment in Brighouse on the market with a lease of a little over 59 years outstanding. Finn informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
<h5>Brighouse case:</h5>
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In 2014 we were contacted by Mrs J Cook who, having took over the lease of a first floor flat in Brighouse in February 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Brighouse with a long lease were valued about £285,000. The mid-range ground rent payable was £45 billed per annum. The lease end date was in 2097. Considering the 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
<h5>Brighouse case:</h5>
<p> Mr and Mrs. Y François owned a recently refurbished apartment in Brighouse in November 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Brighouse with an extended lease were worth £225,800. The average ground rent payable was £60 invoiced per annum. The lease concluded in 2086. Given that there were 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of costs.
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