Main reasons to start your Cheltenham lease extension
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Main reasons to commence your Cheltenham lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/cheltenham">Cheltenham</a> leasehold property depreciates with the years remaining on the lease.
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<p> It’s an underpublicised truth that a Cheltenham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Cheltenham property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Cheltenham will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
<h4>Lending institutions may decide not to finance a property on a short lease</h4> Banks and building societies are really restricting their approach as regards to homes in Cheltenham with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus narrowing the amount of prospective buyers.
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<th> Requirement
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<td>Godiva Mortgages</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>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</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>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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What makes us experts in Cheltenham lease extensions?
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<p> Using our service will provide you increased control over the value of your Cheltenham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell.
The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Cheltenham Lease Extension Example Cases:
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<h5> Sam, Cheltenham, Gloucestershire,</h5>
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Sam owned a conversion flat in Cheltenham being marketed with a lease of a few days over fifty eight years remaining. Sam informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
<h5>Cheltenham case:</h5>
<p> Dr K Bailey owned a recently refurbished flat in Cheltenham in May 1995. We are asked if we could estimate the price would be for a 90 year lease extension. Similar residencies in Cheltenham with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 15 March 2089. Taking into account 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.
<h5>Cheltenham case:</h5>
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Last Winter we were phoned by Dr M Roux , who
purchased a one bedroom apartment in Cheltenham in February 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar residencies in Cheltenham with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 collected yearly. The lease ended in 2100. Taking into account 74 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
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