Why you should commence your Farnham Royal lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/farnham-royal">Farnham Royal</a> lease depreciates with the years remaining on the lease.
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<p> Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Farnham Royal. Inevitably, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Farnham Royal have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful attention before putting off your Farnham Royal lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
<h4>Lenders may not loan monies on a short lease</h4> Mortgage companies do not like short residential leases. You most probably encounter difficulties if you need to sell your flat in Farnham Royal if the remaining term of your lease is below the criteria set by the majority of lenders. Different lenders have varying criteria but generally theyrequire a minimum remaining lease term of seventy years.
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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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>Chelsea 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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<td>Halifax</td>
<td> Minimum 70 years from the date 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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Why use us for your lease extension in Farnham Royal? </h4>
<p> Regardless of whether you are a tenant or a freeholder in Farnham Royal,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Farnham Royal valuers.
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Farnham Royal Lease Extension Example Cases:
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<h5> Aaron, Farnham Royal, Buckinghamshire,</h5>
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Aaron owned a high value apartment in Farnham Royal being marketed with a lease of a little over fifty eight years left. Aaron informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
<h5>Farnham Royal case:</h5>
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Last Christmas we were called by Mr and Mrs. B Rogers , who
acquired a purpose-built flat in Farnham Royal in September 1995. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Similar homes in Farnham Royal with an extended lease were worth £191,000. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2084. Considering the 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of professional charges.
<h5>Farnham Royal case:</h5>
<p> Mr and Mrs. P Rose owned a one bedroom flat in Farnham Royal in September 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar premises in Farnham Royal with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expiry date was on 2 May 2095. Given that there were 69 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
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