Main reasons to start your Huntingdon 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/huntingdon">Huntingdon</a> property value </h4>
<p> With a residential leasehold property in Huntingdon, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years remaining. Leasehold owners in Huntingdon with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has below 80 years outstanding, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due. <h4>Huntingdon property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Huntingdon with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it. <h4>Mortgage lenders will not grant a mortgage on a short lease</h4> Lenders do not grant a mortgage on short residential leases. You are likely to experience difficulties if you want to sell your flat in Huntingdon if the remaining term of your lease is below the criteria set by most mortgage companies. Different lenders have varying requirements but generally theyrequire a minimum remaining lease term of seventy years.
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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>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>Coventry Building Society</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>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>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in Huntingdon lease extensions?
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The conveyancing solicitors that we work with handle Huntingdon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
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Huntingdon Lease Extension Case Studies:
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<h5> Harrison, Huntingdon, Cambridgeshire,</h5>
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Harrison was the the leasehold owner of a conversion apartment in Huntingdon on the market with a lease of a little over 61 years remaining. Harrison informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
<h5>Huntingdon case:</h5>
<p> Mr and Mrs. R Clarke bought a purpose-built apartment in Huntingdon in April 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Huntingdon with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated in 2082. Considering the 56 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.
<h5>Huntingdon case:</h5>
<p> Mr and Mrs. G Lambert completed a purpose-built flat in Huntingdon in June 1999. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical properties in Huntingdon with an extended lease were worth £300,000. The average ground rent payable was £50 collected annually. The lease finished on 8 August 2102. Given that there were 76 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
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