Top reasons for Prestwich 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/prestwich">Prestwich</a> leasehold property depreciates with the years remaining on the lease.
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<p> The closer a domestic lease in Prestwich gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Prestwich will qualify for this right; however a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Prestwich with in excess of 100 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 upside in buying the freehold unless savings on ground rent and estate charges justify it. <h4>Lenders will not loan monies on a short lease</h4>
The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.
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<tr><th>Lender</th>
<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>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>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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<h4> Get in touch with one of our Prestwich lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service will provide you increased control over the value of your Prestwich leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Prestwich Lease Extension Case Summaries:
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<h5> Jodie, Prestwich, Greater Manchester,</h5>
<p> Following protracted negotiations with the landlord of her ground floor flat in Prestwich, Jodie initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction was concluded in March 2006. The landlord’s costs were kept to an absolute minimum.
<h5>Prestwich case:</h5>
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In 2012 we were contacted by Mr and Mrs. U Stewart who, having was assigned a lease of a one bedroom apartment in Prestwich in May 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Prestwich with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 11 June 2095. Considering the 69 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
<h5>Prestwich case:</h5>
<p> Mr and Mrs. E Nguyen moved into a ground floor flat in Prestwich in March 1997. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative residencies in Prestwich with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 billed annually. The lease lapsed on 4 April 2085. Considering the 59 years as a residual term we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of legals.
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