Top reasons for Repton 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/repton">Repton</a> property value </h4>
<p> As the length of the unexpired term of a Repton residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Repton will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain 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>
<p> It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
<h4>Lending institutions will not grant a mortgage with a short lease</h4> Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic as and when you come to dispose of or refinance your property as it will be practically unmortgageable. Even though you may not have an imminent plan to sell but when you do your purchaser will have to hold off for two years before they can start the legal procedures for an extension to the lease.
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<tr><th>Lender</th>
<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>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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date 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 also be not less than 75 years at the outset of the mortgage.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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What makes us experts in Repton lease extensions?
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The lawyers that we work with undertake Repton 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 conveyancer we work with provide it.
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Repton Lease Extension Case Summaries:
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<h5> Natalie, Repton, Derbyshire,</h5>
<p> After protracted discussions with the freeholder of her ground floor apartment in Repton, Natalie started the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction completed in May 2014. The landlord’s costs were negotiated to below 550 GBP.
<h5>Repton case:</h5>
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In 2013 we were contacted by Mr Ethan Rivera who, having acquired a purpose-built flat in Repton in May 2003. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative homes in Repton with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease expired in 2105. Having 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
<h5>Repton case:</h5>
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In 2013 we were phoned by Ms Isabel Dupont who, having owned a basement flat in Repton in November 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Repton with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated on 26 June 2085. Considering the 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
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