Top reasons for Caversham lease extension
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Why you should commence your Caversham lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/caversham">Caversham</a> leasehold property depreciates with the years remaining on the lease.
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<p> When it comes to long leasehold premises in Caversham, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Anyone in Caversham with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years remaining, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable. <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
<h4>Lenders may decide not to loan monies on a short lease</h4>
Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be deficient for lending purposes.
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<th> Requirement
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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>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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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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Why use us for your lease extension in Caversham? </h4>
<p> Retaining our service will provide you enhanced control over the value of your Caversham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell.
The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Caversham Lease Extension Example Cases:
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<h5> Stanley, Caversham, Berkshire</h5>
<p> In recent months Stanley, came precariously close to the eighty-year threshold with the lease on his first floor flat in Caversham. Having bought his property two decades ago, the lease term was of little bearing. Fortunately, he became aware that he needed to take action soon on a lease extension. Stanley was able to extend his lease at the eleventh hour in April. Stanley and the landlord ultimately agreed on sum of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £850.
<h5>Caversham case:</h5>
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Last Spring we were e-mailed by Mr Ali Miller , who
moved into a studio apartment in Caversham in January 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Caversham with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease terminated in 2088. Taking into account 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.
<h5>Caversham case:</h5>
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Last Winter we were phoned by Dr Matthew Adams , who
acquired a one bedroom apartment in Caversham in October 2003. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar homes in Caversham with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish in 2099. Having 73 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
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