Main reasons to start your Sandbanks lease extension
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Why you should commence your Sandbanks lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/sandbanks">Sandbanks</a> lease depreciates with the years remaining on the lease.
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Sandbanks leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Sandbanks enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sandbanks you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value <h4>Sandbanks property with a lease extension has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
<h4>Mortgage lenders may not issue a mortgage with a short lease</h4> Almost all mortgage companies will not lend on a lease with less than seventy years left to run - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this could result in your Sandbanks property being difficult to dispose of or to obtain finance on. <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>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>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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<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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Why use us for your lease extension in Sandbanks? </h4>
<p> Retaining our service gives you increased control over the value of your Sandbanks leasehold, as your property will be more valuable and marketable in respect of lease length should you want 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>
Sandbanks Lease Extension Case Summaries:
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<h5> Leo, Sandbanks, Dorset,</h5>
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Leo was the the leasehold proprietor of a conversion flat in Sandbanks being marketed with a lease of a few days over 59 years left. Leo on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
<h5>Sandbanks case:</h5>
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In 2010 we were called by Dr A Lefèvre who, having purchased a garden apartment in Sandbanks in April 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Sandbanks with an extended lease were valued around £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease concluded on 7 June 2079. Having 53 years unexpired we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus expenses.
<h5>Sandbanks case:</h5>
<p> Mr V Gray owned a studio apartment in Sandbanks in October 1998. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Similar flats in Sandbanks with an extended lease were worth £220,400. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 24 February 2090. Considering the 64 years left we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus professional charges.
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