Main reasons to commence your Highnam lease extension
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Why you should start your Highnam lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/highnam">Highnam</a> property value </h4>
<p> With a residential leasehold premises in Highnam, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years left. Leasehold owners in Highnam with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the current legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due. <h4>Highnam property with a lease extension is almost the same value as a freehold</h4>
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Leasehold premises in Highnam with more than one hundred years remaining 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it. <h4>Lenders may not lend on a short lease</h4>
The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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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>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>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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Why use us for your lease extension in Highnam? </h4>
<p> Retaining our service gives you better control over the value of your Highnam leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell.
The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Highnam Lease Extension Case Studies:
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<h5> Aaron, Highnam, Gloucestershire,</h5>
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Aaron owned a 2 bedroom apartment in Highnam on the market with a lease of just over sixty years left. Aaron on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
<h5>Highnam case:</h5>
<p> Dr O González was assigned a lease of a ground floor flat in Highnam in September 2010. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Highnam with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated on 16 September 2079. Having 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
<h5>Highnam case:</h5>
<p> Dr Naomi Girard purchased a studio flat in Highnam in July 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Highnam with an extended lease were valued around £290,000. The average amount of ground rent was £45 collected every twelve months. The lease elapsed in 2099. Taking into account 73 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
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