Why you should start your Creekmouth lease extension
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Main reasons to commence your Creekmouth lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/creekmouth">Creekmouth</a> property value </h4>
<p> The re-sale value of a leasehold property in Creekmouth is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be concluded in advance of the eighty year cut off point. Statute entitles Creekmouth qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension. <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Creekmouth with over 100 years unexpired on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges warrant it. <h4>Mortgage lenders may decide not to loan monies on a short lease</h4> Almost all banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will consider providing a mortgage on it. Even if you don't require a mortgage, you should be conscious that it is reasonable to assume that someone wishing to purchase your property in the future might well do, so where they can't secure a mortgage, then the value of your property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to lend 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>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>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>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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What makes us experts in Creekmouth lease extensions?
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The conveyancing solicitors that we work with handle Creekmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
<h4>
Creekmouth Lease Extension Case Studies:
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<h5> Sam, Creekmouth, London</h5>
<p> In recent months Sam, came seriously close to the 80-year mark with the lease on his leasehold flat in Creekmouth. In buying his home two decades ago, the unexpired term was of no significance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Sam arranged for a lease extension at the eleventh hour last July. Sam and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had slid lower than eighty years, the figure would have escalated by at least £1,025.
<h5>Creekmouth case:</h5>
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Last Winter we were phoned by Dr Jasper Bonnet , who
bought a one bedroom apartment in Creekmouth in October 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Creekmouth with an extended lease were in the region of £242,600. The average amount of ground rent was £45 invoiced per annum. The lease termination date was in 2093. Considering the 67 years unexpired we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
<div> <h5>Decision in Newham</h5>
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An example of a Lease Extension case for a Creekmouth premises is
46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow
County Court made a vesting order that the freeholder surrender his
lease and be granted a new lease of the Premises on such terms as may
be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225
This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 69.77 years.
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