Why you should start your Bletchley lease extension
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Why you should commence your Bletchley lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/bletchley">Bletchley</a> leasehold property depreciates with the years remaining on the lease.
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Bletchley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bletchley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bletchley you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Bletchley flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay <h4>Bletchley property with a lease extension is almost the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
<h4>Mortgage lenders may decide not to issue a mortgage with a short lease</h4> Lending institutions have specific criteria when loaning funds charged on leasehold property. Many will simply refrain from lending at all once the residual lease term slips beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are wanting to refinance your Bletchley property.
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<td>Accord Mortgages</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>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>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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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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What makes us experts in Bletchley lease extensions?
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The conveyancers that we work with procure Bletchley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
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Bletchley Lease Extension Case Studies:
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<h5> Kian, Bletchley, Buckinghamshire,</h5>
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Kian owned a 2 bedroom apartment in Bletchley on the market with a lease of just over 72 years outstanding. Kian on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
<h5>Bletchley case:</h5>
<p> Mrs Paige Díaz owned a one bedroom apartment in Bletchley in February 2011. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative premises in Bletchley with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 collected per annum. The lease elapsed in 2084. Considering the 58 years left we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.
<h5>Bletchley case:</h5>
<p> Ms Naomi Rivera purchased a newly refurbished flat in Bletchley in August 2003. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparative flats in Bletchley with a long lease were worth £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was on 16 August 2095. Given that there were 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
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