Why you should start your Poole lease extension
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Why you should commence your Poole lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/poole">Poole</a> lease depreciates with the years remaining on the lease.
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<p> Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Poole. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Poole have the right to extend the lease for a further ninety years under statute. You should give due attention before delaying your Poole lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold premises in Poole with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it. <h4>Lenders will not finance a property with a short lease</h4>
Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are deemed to be deficient security.
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<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>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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date 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>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in Poole lease extensions?
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<p> Retaining our service will provide you increased control over the value of your Poole leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell.
The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Poole Lease Extension Example Cases:
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<h5> Tia, Poole, Dorset,</h5>
<p> Off the back of protracted discussions with the freeholder of her leasehold apartment in Poole, Tia initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was concluded in November 2009. The landlord’s charges were kept to an absolute minimum.
<h5>Poole case:</h5>
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Last Spring we were phoned by Mr Benjamin Morgan , who
purchased a garden flat in Poole in July 2002. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Poole with a long lease were valued around £193,400. The average ground rent payable was £65 billed yearly. The lease end date was in 2085. Taking into account 59 years outstanding we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
<h5>Poole case:</h5>
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Last month we were e-mailed by Dr B Carter , who
owned a ground floor flat in Poole in October 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Poole with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed in 2096. Considering the 70 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
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