Why you should start your Long Eaton lease extension
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Main reasons to commence your Long Eaton lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/long-eaton">Long Eaton</a> property value </h4>
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Long Eaton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Long Eaton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Long Eaton you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value <h4>Long Eaton property with a lease extension has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
<h4>Lenders will not loan monies with a short lease</h4>
Most banks have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be insufficient for lending purposes.
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<th> Requirement
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<td>Accord Mortgages</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>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<h4> Get in touch with one of our Long Eaton lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service gives you better control over the value of your Long Eaton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Long Eaton Lease Extension Example Cases:
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<h5> Daniel, Long Eaton, Derbyshire</h5>
<p> 14 months ago Daniel, came seriously near to the eighty-year threshold with the lease on his two bedroom flat in Long Eaton. Having bought his flat two decades ago, the unexpired term was of little significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Daniel extended the lease at the eleventh hour in January. Daniel and the freeholder subsequently agreed on a premium of £5,500 . If the lease had fallen below eighty years, the amount would have become more exhorbitant by a minimum £975.
<h5>Long Eaton case:</h5>
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In 2009 we were called by Mr Jackson Jones who, having purchased a one bedroom flat in Long Eaton in January 1997. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Identical premises in Long Eaton with a long lease were valued around £280,000. The mid-range ground rent payable was £45 billed monthly. The lease finished in 2096. Given that there were 70 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.
<h5>Long Eaton case:</h5>
<p> Dr G Rodríguez was assigned a lease of a one bedroom flat in Long Eaton in November 2003. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative premises in Long Eaton with a long lease were valued about £218,400. The average amount of ground rent was £60 invoiced monthly. The lease finished in 2085. Having 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 not including expenses.
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