Main reasons to commence your Slough lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/slough">Slough</a> property value </h4>
<p> There is no doubt about it a leasehold property in Slough is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years left 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 logic behind why you should consider extending without delay. The majority of flat owners in Slough will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common 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>
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Leasehold properties in Slough with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it. <h4>Lending institutions will not finance a property with a short lease</h4>
Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be inadequate for lending purposes.
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<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Coventry Building Society</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>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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What makes us experts in Slough lease extensions?
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<p> Engaging our service will provide you enhanced control over the value of your Slough 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Slough Lease Extension Example Cases:
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<h5> Elijah, Slough, Berkshire,</h5>
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Elijah was the the leasehold owner of a 2 bedroom apartment in Slough being sold with a lease of just over 72 years remaining. Elijah informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
<h5>Slough case:</h5>
<p> Mr and Mrs. P Lefebvre purchased a garden apartment in Slough in January 2009. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar premises in Slough with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed on 12 September 2103. Having 77 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
<h5>Slough case:</h5>
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In 2011 we were approached by Mr and Mrs. M Robinson who, having completed a one bedroom apartment in Slough in April 2002. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical homes in Slough with an extended lease were valued about £260,200. The mid-range amount of ground rent was £65 billed yearly. The lease concluded on 18 September 2092. Taking into account 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including fees.
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