Top reasons for Flint lease extension
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Main reasons to commence your Flint lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/flint">Flint</a> property value </h4>
<p> When it comes to residential leasehold property in Flint, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Anyone in Flint with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years left, under the current Act the landlord can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable. <h4>Flint property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Flint with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lending institutions may not issue a mortgage on a short lease</h4> Lenders are tightening their criteria and a meaningful number now require flats to have at least sixty if not seventy years left at the end of the mortgage. As many flats in Flint were created in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.
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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>Halifax</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>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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What makes us experts in Flint lease extensions?
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<p> Irrespective of whether you are a tenant or a freeholder in Flint,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 Flint valuers.
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Flint Lease Extension Case Studies:
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<h5> Sophie, Flint, Flintshire,</h5>
<p> Subsequent to unsuccessful negotiations with the landlord of her purpose-built apartment in Flint, Sophie started the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was concluded in September 2011. The freeholder’s charges were restricted to a tad over 500 GBP.
<h5>Flint case:</h5>
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In 2009 we were called by Mr and Mrs. V Lee who, having completed a garden flat in Flint in February 1998. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Flint with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease concluded in 2098. Taking into account 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
<h5>Flint case:</h5>
<p> Mr and Mrs. O Torres owned a recently refurbished apartment in Flint in November 2004. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Flint with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded in 2078. Considering the 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including costs.
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