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Top reasons for Binfield lease extension


Top reasons for lease extension now:

A Binfield leasehold property depreciates with the years remaining on the lease.

It’s a harsh certainty that a Binfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Binfield property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Binfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.

Binfield property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies will not finance a property with a short lease

Almost all mortgage companies require a lengthy amount of time left on a leasehold residence before they will consider lending on it. Even if you don't need a mortgage, you should keep in mind that it is probable that someone intending to acquire your property in the future might well do, so where they can't secure a mortgage, then the financial worth of your property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to accept

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;
Coventry Building Society 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.
Halifax Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Binfield lease extensions?

Regardless of whether you are a tenant or a freeholder in Binfield,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 Binfield valuers.

Binfield Lease Extension Example Cases:

Oliver, Binfield, Berkshire,

Oliver was the the leasehold proprietor of a 2 bedroom flat in Binfield on the market with a lease of a few days over sixty years unexpired. Oliver informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Binfield case:

Last Christmas we were phoned by Mr and Mrs. H Hernández , who owned a studio apartment in Binfield in November 2002. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative premises in Binfield with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish in 2088. Given that there were 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.

Binfield case:

Last June we were contacted by Mrs Nicole Pérez , who acquired a one bedroom apartment in Binfield in June 2011. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical residencies in Binfield with a long lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated in 2077. Having 52 years outstanding we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.