Why you should commence your Easthampstead lease extension
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Why you should start your Easthampstead lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/easthampstead">Easthampstead</a> leasehold property depreciates with the years remaining on the lease.
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<p> Unfortunately that a Easthampstead residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Easthampstead property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Easthampstead will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether 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 conveyancing solicitor for the duration of the process.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Easthampstead with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it. <h4>Lenders may not issue a mortgage on a short lease</h4> The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties as and when you wish to sell or remortgage your property as it will be effectively unmortgageable. Even though you may not have an immediate plan to sell but when you do your purchaser must hold off for 2 years before they can start the legal procedures for a lease extension.
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<th> Requirement
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<td>Halifax</td>
<td> Minimum 70 years from the date 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>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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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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 Easthampstead lease extensions?
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<p> Regardless of whether you are a tenant or a freeholder in Easthampstead,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Easthampstead valuers.
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Easthampstead Lease Extension Case Studies:
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<h5> Ali, Easthampstead, Berkshire,</h5>
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Ali owned a high value apartment in Easthampstead being marketed with a lease of fraction over fifty eight years outstanding. Ali informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
<h5>Easthampstead case:</h5>
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In 2014 we were contacted by Mr and Mrs. Y Cooper who, having bought a garden flat in Easthampstead in November 2002. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar properties in Easthampstead with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded in 2103. Given that there were 77 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
<h5>Easthampstead case:</h5>
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Last Christmas we were contacted by Mr T Ricardo , who
was assigned a lease of a first floor apartment in Easthampstead in June 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical flats in Easthampstead with 100 year plus lease were worth £265,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 1 June 2092. Taking into account 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including professional charges.
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