Main reasons to commence your Formby lease extension
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Main reasons to start your Formby lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/formby">Formby</a> lease depreciates with the years remaining on the lease.
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<p> The market value of Formby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than 80 years
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold premises in Formby with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it. <h4>Lending institutions will not grant a mortgage with a short lease</h4> Lending institutions have set criteria when loaning monies secured on leasehold property. Many will simply refrain from lending at all once an unexpired lease term slips beneath a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are intending to remortgage your Formby property.
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<th> Requirement
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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>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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start 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 Formby? </h4>
<p> Regardless of whether you are a tenant or a landlord in Formby,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Formby valuers.
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Formby Lease Extension Example Cases:
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<h5> Eli, Formby, Merseyside</h5>
<p> In recent months Eli, started to get near to the eighty-year threshold with the lease on his garden apartment in Formby. In buying his property 19 years previously, the unexpired term was of no relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Eli arranged for a lease extension just under the wire last July. Eli and the freeholder eventually settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £850.
<h5>Formby case:</h5>
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Last March we were e-mailed by Dr S Reed , who
acquired a one bedroom flat in Formby in January 2010. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical homes in Formby with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed on 14 January 2088. Having 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
<h5>Formby case:</h5>
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In 2009 we were approached by Mr Leon Bernard who, having was assigned a lease of a first floor flat in Formby in March 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Formby with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired on 27 February 2099. Given that there were 73 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
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