Top reasons for South Woodham Ferrers lease extension
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Main reasons to start your South Woodham Ferrers lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/south-woodham-ferrers">South Woodham Ferrers</a> leasehold property depreciates with the years remaining on the lease.
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The basic rule is, all other factors being equal, the shorter the lease the more costly the premium.
Qualifying leaseholders in South Woodham Ferrers have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your South Woodham Ferrers lease extension. Postponing that expense now simply escalates the price you will ultimately be required to pay for a lease extension. <h4>An extended lease 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 approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
<h4>Lending institutions will not finance a property with a short lease</h4> Banks and building societies are really restricting their approach as regards to homes in South Woodham Ferrers with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus limiting the number of potential purchasers.
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<th> Requirement
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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>Leeds Building Society</td>
<td> 85 years remaining from the start 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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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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<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 South Woodham Ferrers lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service gives you better control over the value of your South Woodham Ferrers 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
South Woodham Ferrers Lease Extension Example Cases:
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<h5> Nathan, South Woodham Ferrers, Essex</h5>
<p> Two years ago Nathan, came critically close to the eighty-year threshold with the lease on his purpose- built apartment in South Woodham Ferrers. Having purchased his home two decades ago, the lease term was of little interest. As luck would have it, he noticed he would soon be paying an inflated amount for Extending the lease. Nathan extended the lease at the eleventh hour in June. Nathan and the landlord eventually settled on the final figure of £6,000 . If the lease had dipped lower than eighty years, the sum would have escalated by at least £925.
<h5>South Woodham Ferrers case:</h5>
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In 2014 we were phoned by Mr and Mrs. B Clarke who, having purchased a recently refurbished flat in South Woodham Ferrers in October 2011. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar properties in South Woodham Ferrers with an extended lease were valued about £193,400. The average ground rent payable was £65 collected per annum. The lease elapsed on 10 February 2085. Considering the 59 years left we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
<h5>South Woodham Ferrers case:</h5>
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In 2011 we were called by Ms Bethan Lefèvre who, having took over the lease of a basement flat in South Woodham Ferrers in November 2006. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative premises in South Woodham Ferrers with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 11 June 2096. Having 70 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
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