Main reasons to commence your Parkstone lease extension
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Why you should commence your Parkstone lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/parkstone">Parkstone</a> leasehold property depreciates with the years remaining on the lease.
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<p> Unfortunately that a Parkstone residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Parkstone property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Parkstone will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
<h4>Parkstone property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Parkstone with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it. <h4>Lenders may not finance a property with a short lease</h4> Nearly all mortgage companies will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Parkstone property becoming difficult to sell or remortgage. <p>
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<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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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>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>Yorkshire 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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<h4> Get in touch with one of our Parkstone lease extension solicitors or enfranchisement solicitors
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Lease extensions in Parkstone can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Parkstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Parkstone Lease Extension Case Summaries:
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<h5> Samuel, Parkstone, Dorset</h5>
<p> During the course of the last few months Samuel, came very close to the eighty-year mark with the lease on his two bedroom apartment in Parkstone. Having bought his property twenty years previously, the lease term was of minimal interest. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Samuel was able to extend his lease just under the wire last January. Samuel and the freeholder via the management company subsequently settled on a premium of £6,000 . If he not met the deadline, the price would have escalated by at least £975.
<h5>Parkstone case:</h5>
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Last month we were e-mailed by Mr H Hall , who
purchased a purpose-built apartment in Parkstone in September 2003. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar premises in Parkstone with a long lease were in the region of £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 27 May 2077. Given that there were 51 years remaining we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.
<h5>Parkstone case:</h5>
<p> Mr Ryan Campbell acquired a basement apartment in Parkstone in March 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Parkstone with 100 year plus lease were worth £210,600. The average ground rent payable was £45 invoiced every twelve months. The lease concluded in 2088. Taking into account 62 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.
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