Top reasons for Fairford lease extension
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Main reasons to start your Fairford lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/fairford">Fairford</a> property value </h4>
<p> It’s a harsh certainty that a Fairford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Fairford property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Fairford will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Fairford with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it. <h4>Banks and Building Societies will not finance a property with a short lease</h4> Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This may cause difficulties when you wish to sell or refinance your flat as it will be practically unmortgageable. You might have no imminent intention to sell but when you do your purchaser must hold off for two years before being able to initiate the legal procedures for an extension to the lease.
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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>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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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>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.
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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 Fairford lease extension solicitors or enfranchisement solicitors
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<p> Irrespective of whether you are a tenant or a landlord in Fairford,the lease extension solicitors 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 Fairford valuers.
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Fairford Lease Extension Case Studies:
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<h5> Alfie, Fairford, Gloucestershire</h5>
<p> Twenty four months ago Alfie, started to get near to the 80-year mark with the lease on his leasehold apartment in Fairford. In buying his property twenty years previously, the unexpired term was of minimal interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Alfie arranged for a lease extension just ahead of time last July. Alfie and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If the lease had fallen to less than 80 years, the figure would have increased by a minimum £875.
<h5>Fairford case:</h5>
<p> Dr E Peterson moved into a purpose-built apartment in Fairford in October 2010. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable residencies in Fairford with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2093. Taking into account 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus costs.
<h5>Fairford case:</h5>
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In 2013 we were e-mailed by Mr R Garcia who, having moved into a purpose-built flat in Fairford in October 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative flats in Fairford with an extended lease were worth £206,200. The average ground rent payable was £60 invoiced quarterly. The lease expired in 2082. Given that there were 56 years left we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus costs.
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