Why you should commence your Allenton lease extension
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Main reasons to start your Allenton lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/allenton">Allenton</a> property value </h4>
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Allenton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Allenton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Allenton you would be well advised to see if your lease has between 70 and ninety years remaining. There are good reasons why a Allenton flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Allenton 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Mortgage lenders will not issue a mortgage on a short lease</h4> Banks and Building Societies have specific criteria when lending funds charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term slips below a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired below 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are intending to remortgage your Allenton property.
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<tr><th>Lender</th>
<th> Requirement
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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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Yorkshire 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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Why use us for your lease extension in Allenton? </h4>
<p> Regardless of whether you are a tenant or a freeholder in Allenton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Allenton valuers.
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Allenton Lease Extension Case Summaries:
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<h5> Jamie, Allenton, Derbyshire</h5>
<p> Half a year ago Jamie, came very near to the 80-year threshold with the lease on his purpose- built apartment in Allenton. In buying his property twenty years ago, the unexpired term was of minimal bearing. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Jamie was able to extend his lease just under the wire last January. Jamie and the freeholder eventually agreed on an amount of £5,500 . If the lease had descended below 80 years, the amount would have increased by a minimum £875.
<h5>Allenton case:</h5>
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In 2011 we were phoned by Mr and Mrs. R Ali who, having acquired a recently refurbished flat in Allenton in June 1999. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar flats in Allenton with an extended lease were worth £223,400. The average amount of ground rent was £60 collected quarterly. The lease finished in 2085. Taking into account 59 years as a residual term we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including expenses.
<h5>Allenton case:</h5>
<p> Ms T Green was assigned a lease of a one bedroom apartment in Allenton in May 2002. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar homes in Allenton with an extended lease were valued around £205,000. The average ground rent payable was £50 collected quarterly. The lease elapsed on 12 May 2105. Taking into account 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
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