Top reasons for Werrington lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/werrington">Werrington</a> lease depreciates with the years remaining on the lease.
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<p> The re-sale value of a leasehold property in Werrington is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year mark. Statute enables Werrington qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension. <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
<h4>Lenders may decide not to finance a property on a short lease</h4>
Most banks have tightened 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 under 75 years as they are regarded as unacceptable 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>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>Birmingham Midshires</td>
<td> Minimum 70 years from the date 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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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<h4> Get in touch with one of our Werrington lease extension solicitors or enfranchisement solicitors
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<p> Using our service gives you enhanced control over the value of your Werrington leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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>
Werrington Lease Extension Case Studies:
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<h5> Omar, Werrington, Cambridgeshire,</h5>
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Omar owned a studio apartment in Werrington being sold with a lease of fraction over sixty years unexpired. Omar informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
<h5>Werrington case:</h5>
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Last Winter we were e-mailed by Mr and Mrs. H Lewis , who
took over the lease of a studio flat in Werrington in November 2000. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical premises in Werrington with a long lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease ended in 2099. Considering the 73 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
<h5>Werrington case:</h5>
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In 2014 we were called by Mr V Moreau who, having moved into a basement apartment in Werrington in July 2003. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Werrington with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £60 collected quarterly. The lease expired in 2088. Considering the 62 years remaining we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.
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