Appleby In Westmorland Lease Extension - Free Consultation

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Main reasons to commence your Appleby In Westmorland lease extension

Main reasons to commence your Appleby In Westmorland lease extension today:

A Appleby In Westmorland lease depreciates with the years remaining on the lease.

Appleby In Westmorland leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Appleby In Westmorland will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term 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.

Lending institutions may decide not to loan monies on a short lease

Lending institutions are less likely to give a loan offer on a domestic flat in Appleby In Westmorland with a short lease. Many lenders simply refuse a mortgage on leases with below 75 years left.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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:

• 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
• The value of the property subject to the short remaining term is £500,000 or more AND
• 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;
Chelsea Building Society 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.
Godiva Mortgages 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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Appleby In Westmorland?

Regardless of whether you are a tenant or a landlord in Appleby In Westmorland,the lease extension solicitors 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 Appleby In Westmorland valuers.

Appleby In Westmorland Lease Extension Example Cases:

Connor, Appleby In Westmorland, Cumbria,

Connor owned a studio flat in Appleby In Westmorland being sold with a lease of a few days over 61 years left. Connor on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.

Appleby In Westmorland case:

In 2012 we were e-mailed by Mr and Mrs. K Ramírez who, having moved into a one bedroom apartment in Appleby In Westmorland in May 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical properties in Appleby In Westmorland with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected annually. The lease termination date was on 19 April 2076. Given that there were 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.

Appleby In Westmorland case:

Mrs Caitlin Bertrand took over the lease of a garden apartment in Appleby In Westmorland in August 2011. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable flats in Appleby In Westmorland with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended in 2087. Taking into account 65 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.