Main reasons to commence your Chesham lease extension
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Why you should start your Chesham lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/chesham">Chesham</a> lease depreciates with the years remaining on the lease.
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<p> When it comes to domestic leasehold premises in Chesham, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years remaining. Leasehold owners in Chesham with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable. <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold premises in Chesham with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it. <h4>Lending institutions may decide not to lend on a short lease</h4> Banks and building societies do not like short residential leases. You are likely to experience problems if you want to sell your flat in Chesham if the remaining lease term is below the criteria set by most mortgage companies. Different lenders have different criteria but generally they are looking for a minimum remaining lease term of 65 years.
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<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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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>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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<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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What makes us experts in Chesham lease extensions?
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<p> Engaging our service gives you better control over the value of your Chesham leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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>
Chesham Lease Extension Case Summaries:
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<h5> Noah, Chesham, Buckinghamshire,</h5>
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Noah was the the leasehold owner of a high value flat in Chesham being marketed with a lease of just over 59 years unexpired. Noah on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
<h5>Chesham case:</h5>
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In 2013 we were e-mailed by Mr and Mrs. T Murphy who, having bought a purpose-built flat in Chesham in August 2002. We are asked if we could estimate the price could be for a ninety year lease extension. Similar premises in Chesham with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 8 May 2083. Having 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.
<h5>Chesham case:</h5>
<p> Mrs O Bennett took over the lease of a studio apartment in Chesham in February 2009. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Chesham with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2094. Taking into account 68 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
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