Main reasons to commence your Billingham lease extension
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Why you should start your Billingham lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/billingham">Billingham</a> property value </h4>
<p> When it comes to long leasehold property in Billingham, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Leasehold owners in Billingham with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has fewer than eighty years left, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable. <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent 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 decades to come.
<h4>Banks and Building Societies will not finance a property on a short lease</h4> Nearly all mortgage companies insist on a lengthy amount of time remaining on a leasehold property before they will contemplate it as adequate security. Even if you don't need a mortgage, you should be conscious that it is likely that someone wishing to purchase your property in the future might well do, so where they are unable to obtain a mortgage, then the financial worth of your property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on <p>
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</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>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>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>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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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>
Why use us for your lease extension in Billingham? </h4>
<p> Irrespective of whether you are a tenant or a freeholder in Billingham,the lease extension experts 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 Billingham valuers.
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Billingham Lease Extension Example Cases:
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<h5> Blake, Billingham, County Durham,</h5>
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Blake owned a conversion flat in Billingham on the market with a lease of just over 59 years unexpired. Blake on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
<h5>Billingham case:</h5>
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Last July we were approach by Dr Joseph Simon , who
was assigned a lease of a studio flat in Billingham in January 1996. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable residencies in Billingham with an extended lease were worth £181,600. The average amount of ground rent was £55 billed every twelve months. The lease termination date was on 23 April 2078. Considering the 52 years left we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.
<h5>Billingham case:</h5>
<p> Mr O James took over the lease of a first floor apartment in Billingham in March 2004. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Billingham with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease concluded in 2098. Having 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
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