Top reasons for Whitchurch lease extension
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Why you should start your Whitchurch lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/whitchurch">Whitchurch</a> leasehold property depreciates with the years remaining on the lease.
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Whitchurch leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Whitchurch will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
<h4>Whitchurch property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Whitchurch with more than 100 years remaining on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it. <h4>Lending institutions may not lend with a short lease</h4>
Most banks have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under 75 years as they are considered to be deficient security.
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<th> Requirement
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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>Godiva Mortgages</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>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>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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What makes us experts in Whitchurch lease extensions?
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<p> Regardless of whether you are a tenant or a freeholder in Whitchurch,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Whitchurch valuers.
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Whitchurch Lease Extension Case Summaries:
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<h5> Omar, Whitchurch, Bristol</h5>
<p> 14 months ago Omar, started to get close to the eighty-year threshold with the lease on his garden apartment in Whitchurch. Having purchased his flat 19 years ago, the length of the lease was of minimal interest. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Omar extended the lease just under the wire last August. Omar and the landlord eventually settled on sum of £5,000 . If the lease had slid lower than eighty years, the premium would have gone up by at least £875.
<h5>Whitchurch case:</h5>
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Last Winter we were e-mailed by Dr Amber Sánchez , who
acquired a ground floor flat in Whitchurch in November 2007. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar homes in Whitchurch with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 billed quarterly. The lease end date was on 15 March 2083. Given that there were 57 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
<h5>Whitchurch case:</h5>
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In 2014 we were contacted by Dr Andrew Campbell who, having completed a ground floor apartment in Whitchurch in July 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable flats in Whitchurch with 100 year plus lease were valued about £245,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish in 2094. Having 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
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