Top reasons for Hermitage 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/hermitage">Hermitage</a> leasehold property depreciates with the years remaining on the lease.
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<p> The only way is down when it comes to Hermitage lease terms.
Hermitage flats that have a residual term lower than eighty years will de-escalate in market price at a rapid rate,
and the cost of extending your lease will rise.
<h4>Hermitage property with a lease extension is almost the same value as a freehold</h4>
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Leasehold premises in Hermitage with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it. <h4>Lending institutions may not lend with a short lease</h4>
The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.
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<tr><th>Lender</th>
<th> Requirement
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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>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>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>
What makes us experts in Hermitage lease extensions?
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The conveyancers that we work with handle Hermitage 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 lawyer we work with provide it.
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Hermitage Lease Extension Case Summaries:
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<h5> Toby, Hermitage, Berkshire</h5>
<p> Last Summer Toby, started to get near to the eighty-year threshold with the lease on his ground floor flat in Hermitage. In buying his property two decades ago, the unexpired term was of minimal interest. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Toby was able to extend his lease just under the wire last January. Toby and the landlord in the end agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have escalated by a minimum £1,075.
<h5>Hermitage case:</h5>
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In 2011 we were approached by Ms Y Rivera who, having acquired a one bedroom apartment in Hermitage in May 1999. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Hermitage with a long lease were valued around £208,600. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 14 February 2083. Taking into account 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.
<h5>Hermitage case:</h5>
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Last Summer we were contacted by Dr W Michel , who
purchased a one bedroom flat in Hermitage in February 1995. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Identical properties in Hermitage with an extended lease were worth £200,000. The average amount of ground rent was £50 collected per annum. The lease terminated in 2103. Taking into account 77 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
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