Top reasons for Totterdown lease extension
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Why you should commence your Totterdown lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/totterdown">Totterdown</a> lease depreciates with the years remaining on the lease.
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Totterdown 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. It is the case that most Totterdown tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Totterdown you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Totterdown flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Totterdown with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Lending institutions may not grant a mortgage with a short lease</h4> Many banks and building societies will not lend on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Totterdown property becoming difficult to dispose of or to obtain finance on. <p>
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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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date 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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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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 Totterdown? </h4>
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Lease extensions in Totterdown can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
<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 in-depth market knowledge dealing with Totterdown 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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Totterdown Lease Extension Case Studies:
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<h5> Nathan, Totterdown, Bristol,</h5>
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Nathan was the the leasehold owner of a 2 bedroom apartment in Totterdown being marketed with a lease of just over 72 years left. Nathan on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
<h5>Totterdown case:</h5>
<p> Mrs Mollie Petit owned a studio apartment in Totterdown in August 2002. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative homes in Totterdown with a long lease were valued around £173,800. The mid-range ground rent payable was £60 collected yearly. The lease came to a finish on 18 January 2081. Having 55 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
<h5>Totterdown case:</h5>
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In 2012 we were approached by Mr and Mrs. B Morgan who, having acquired a recently refurbished apartment in Totterdown in May 1996. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical homes in Totterdown with 100 year plus lease were worth £235,200. The average ground rent payable was £45 invoiced yearly. The lease ended on 26 August 2092. Taking into account 66 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
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