Why you should commence your Exminster lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/exminster">Exminster</a> property value </h4>
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Exminster 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 your lease gets more expensive. It is the case that most Exminster tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Exminster you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Exminster with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it. <h4>Lenders may decide not to lend on a short lease</h4> Mortgage Lenders vary in their lending requirements. Some set the bar at 75 years outstanding on the lease; others may be content with anything with more than 70 years. Below sixty years, it may be impossible to get a mortgage in the first place.
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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>Birmingham Midshires</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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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Why use us for your lease extension in Exminster? </h4>
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Lease extensions in Exminster can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Exminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Exminster Lease Extension Example Cases:
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<h5> Edward, Exminster, Devon</h5>
<p> In recent months Edward, came very close to the eighty-year threshold with the lease on his leasehold apartment in Exminster. In buying his property two decades ago, the length of the lease was of little interest. Fortunately, he realised he needed to take steps soon on Extending the lease. Edward extended the lease just in the nick of time in March. Edward and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £975.
<h5>Exminster case:</h5>
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Last month we were contacted by Mr Elijah Collins , who
took over the lease of a newly refurbished apartment in Exminster in August 1997. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Exminster with an extended lease were in the region of £186,000. The mid-range ground rent payable was £65 collected quarterly. The lease elapsed in 2084. Having 58 years left we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus costs.
<h5>Exminster case:</h5>
<p> Dr R Fournier took over the lease of a first floor apartment in Exminster in April 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Exminster with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed yearly. The lease lapsed on 18 September 2095. Taking into account 69 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
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