Main reasons to commence your Histon 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/histon">Histon</a> leasehold property depreciates with the years remaining on the lease.
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<p> With a domestic leasehold premises in Histon, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Histon with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is due. <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Histon with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lenders may not issue a mortgage on a short lease</h4> Lending institutions are less likely to grant a loan offer on a residential flat in Histon with a short lease. Some lenders simply refuse a mortgage on leases with under 75 years remaining.
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<tr><th>Lender</th>
<th> Requirement
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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>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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<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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What makes us experts in Histon lease extensions?
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<p> Using our service will provide you better control over the value of your Histon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell.
The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Histon Lease Extension Case Studies:
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<h5> Hannah, Histon, Cambridgeshire,</h5>
<p> Trailing unsuccessful discussions with the landlord of her ground floor apartment in Histon, Hannah started the lease extension process as the eighty year deadline was quickly nearing. The transaction was finalised in October 2012. The freeholder’s fees were kept to an absolute minimum.
<h5>Histon case:</h5>
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Last Christmas we were approach by Mrs Francesca Norbert , who
acquired a basement flat in Histon in July 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Histon with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed annually. The lease ran out on 11 May 2092. Given that there were 66 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
<h5>Histon case:</h5>
<p> Mr E Ricardo owned a first floor flat in Histon in August 1995. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar flats in Histon with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected every twelve months. The lease lapsed on 19 October 2102. Taking into account 76 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
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