Why you should commence your Highcliffe lease extension
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Main reasons to start your Highcliffe lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/highcliffe">Highcliffe</a> property value </h4>
<p> As the the remaining lease term of a Highcliffe residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Highcliffe will meet the qualifying criteria; that being said a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
<h4>Lending institutions may decide not to finance a property with a short lease</h4> Mortgage companies are really clamping down as regards to properties in Highcliffe with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus restricting the amount of prospective purchasers.
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<tr><th>Lender</th>
<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>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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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>Yorkshire 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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<h4>
Why use us for your lease extension in Highcliffe? </h4>
<p> Regardless of whether you are a tenant or a landlord in Highcliffe,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Highcliffe valuers.
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Highcliffe Lease Extension Case Summaries:
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<h5> Owen, Highcliffe, Dorset,</h5>
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Owen owned a high value flat in Highcliffe being marketed with a lease of a little over sixty years remaining. Owen on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
<h5>Highcliffe case:</h5>
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Last Summer we were e-mailed by Mr and Mrs. N Bertrand , who
took over the lease of a purpose-built flat in Highcliffe in June 2009. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative residencies in Highcliffe with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired on 26 November 2096. Having 70 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
<h5>Highcliffe case:</h5>
<p> Mr and Mrs. N Kelly was assigned a lease of a studio apartment in Highcliffe in February 2004. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Highcliffe with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 collected quarterly. The lease terminated in 2076. Given that there were 50 years left we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.
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