Why you should start your Tilehurst lease extension
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Why you should start your Tilehurst lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/tilehurst">Tilehurst</a> property value </h4>
<p> The nearer a domestic lease in Tilehurst gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Tilehurst will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify for a lease extension. In certain 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 generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
<h4>Lenders may not lend with a short lease</h4> Lenders are tightening their criteria and a meaningful number now require flats to have at least 60 if not 70 years left once the mortgage has expired. As plenty of flats in Tilehurst were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.
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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>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>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>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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What makes us experts in Tilehurst lease extensions?
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<p> Retaining our service gives you increased control over the value of your Tilehurst 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>
Tilehurst Lease Extension Example Cases:
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<h5> Finley, Tilehurst, Berkshire,</h5>
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Finley owned a conversion flat in Tilehurst being marketed with a lease of a few days over fifty eight years outstanding. Finley informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley obtained expert advice and secured satisfactory deal informally and readily saleable.
<h5>Tilehurst case:</h5>
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In 2013 we were approached by Mr Sebastian Moreau who, having purchased a one bedroom flat in Tilehurst in August 2006. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative homes in Tilehurst with a long lease were in the region of £261,600. The average ground rent payable was £60 billed annually. The lease finished on 2 January 2078. Taking into account 52 years as a residual term we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including expenses.
<h5>Tilehurst case:</h5>
<p> Ms F Clark completed a purpose-built flat in Tilehurst in March 2007. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Tilehurst with an extended lease were in the region of £218,000. The average ground rent payable was £45 collected yearly. The lease terminated on 26 September 2089. Taking into account 63 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.
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