Top reasons for Porthleven lease extension
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Why you should start your Porthleven lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/porthleven">Porthleven</a> lease depreciates with the years remaining on the lease.
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<p> With a domestic leasehold property in Porthleven, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Residents in Porthleven with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years remaining, under the relevant statute the landlord can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable. <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
<h4>Mortgage lenders will not loan monies with a short lease</h4> Lenders are really restricting their approach as regards to properties in Porthleven with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus restricting your market.
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<th> Requirement
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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>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>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>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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<h4>
Why use us for your lease extension in Porthleven? </h4>
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The conveyancing solicitors that we work with procure Porthleven 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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Porthleven Lease Extension Example Cases:
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<h5> Aiden, Porthleven, Cornwall,</h5>
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Aiden owned a 2 bedroom apartment in Porthleven on the market with a lease of a few days over fifty eight years remaining. Aiden informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
<h5>Porthleven case:</h5>
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In 2010 we were contacted by Mr and Mrs. S Leroy who, having completed a purpose-built apartment in Porthleven in April 2009. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical flats in Porthleven with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease end date was in 2106. Taking into account 80 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
<h5>Porthleven case:</h5>
<p> Mrs E François acquired a newly refurbished flat in Porthleven in August 1996. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable premises in Porthleven with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced per annum. The lease expired on 14 April 2086. Having 60 years left we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.
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