Main reasons to commence your Beaminster lease extension
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Why you should start your Beaminster lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/beaminster">Beaminster</a> property value </h4>
<p> The value of Beaminster leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than eighty years
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold properties in Beaminster with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it. <h4>Lending institutions may decide not to lend on a short lease</h4> The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may be problematic when you need to sell or refinance your property as it will be practically unmortgageable. You might have no immediate plan to sell but when you do your buyer must hold off for two years before being able to start the legal procedures for a lease extension.
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<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:<br /><br />• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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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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<h4> Get in touch with one of our Beaminster lease extension solicitors or enfranchisement solicitors
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Lease extensions in Beaminster can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Beaminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Beaminster Lease Extension Example Cases:
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<h5> Yasmin, Beaminster, Dorset,</h5>
<p> Following unsuccessful discussions with the freeholder of her leasehold apartment in Beaminster, Yasmin started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction completed in July 2014. The freeholder’s charges were kept to an absolute minimum.
<h5>Beaminster case:</h5>
<p> Ms B Wilson purchased a ground floor apartment in Beaminster in August 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Beaminster with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 billed quarterly. The lease expiry date was in 2091. Having 65 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.
<h5>Beaminster case:</h5>
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In 2013 we were e-mailed by Ms A Dupont who, having acquired a studio apartment in Beaminster in August 2006. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative flats in Beaminster with an extended lease were worth £275,000. The average amount of ground rent was £55 billed quarterly. The lease ran out on 1 September 2102. Having 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
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