Top reasons for Coleford lease extension
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Main reasons to start your Coleford lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/coleford">Coleford</a> lease depreciates with the years remaining on the lease.
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<p> The nearer a residential lease in Coleford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Coleford will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
<h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
<h4>Lending institutions may not issue a mortgage on a short lease</h4> Mortgage Lenders are distinct in their lending criteria. Some set the bar at 75 years outstanding on the lease; others may be content with anything in excess 70 years. Below 60 years, it may be problematic to get a mortgage at all.
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<th> Requirement
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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>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.
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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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<h4> Get in touch with one of our Coleford lease extension solicitors or enfranchisement solicitors
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<p> Regardless of whether you are a tenant or a landlord in Coleford,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 experience and the close ties they enjoy with Coleford valuers.
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Coleford Lease Extension Case Studies:
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<h5> James, Coleford, Gloucestershire</h5>
<p> During the course of the last few months James, started to get near to the 80-year threshold with the lease on his first floor apartment in Coleford. Having purchased his property 19 years previously, the unexpired term was of minimal significance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. James extended the lease at the eleventh hour last May. James and the landlord subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the sum would have become more costly by at least £950.
<h5>Coleford case:</h5>
<p> Dr Stephanie Lewis was assigned a lease of a newly refurbished apartment in Coleford in July 2002. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Coleford with a long lease were in the region of £250,400. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2090. Considering the 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus legals.
<h5>Coleford case:</h5>
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In 2013 we were contacted by Dr J David who, having completed a ground floor flat in Coleford in March 2007. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Coleford with a long lease were valued about £184,000. The average ground rent payable was £55 billed monthly. The lease elapsed in 2079. Considering the 53 years outstanding we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
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