Why you should start your Eccles lease extension
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Main reasons to start your Eccles lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/eccles">Eccles</a> property value </h4>
<p> It’s an underpublicised certainty that a Eccles residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Eccles property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Eccles will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
<h4>Eccles property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Eccles with in excess of 100 years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it. <h4>Lending institutions may decide not to issue a mortgage with a short lease</h4> Banks and building societies do not like short residential leases. You most probably experience problems if you wish to sell your flat in Eccles if the unexpired term of your lease is below the criteria set by the majority of banks and building societies. Different mortgage companies have different requirements but generally they are looking for a minimum remaining lease term of seventy years.
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<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>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>Coventry Building Society</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>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in Eccles lease extensions?
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Lease extensions in Eccles can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Eccles lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Eccles Lease Extension Example Cases:
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<h5> Theo, Eccles, Greater Manchester,</h5>
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Theo was the the leasehold owner of a studio flat in Eccles on the market with a lease of just over 61 years outstanding. Theo informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
<h5>Eccles case:</h5>
<p> Mr P Cox acquired a ground floor apartment in Eccles in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Eccles with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 billed quarterly. The lease expired on 28 January 2089. Having 63 years left we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.
<h5>Eccles case:</h5>
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In 2012 we were contacted by Dr O Mercier who, having was assigned a lease of a recently refurbished flat in Eccles in April 1997. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Eccles with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 billed annually. The lease finished in 2078. Given that there were 52 years remaining we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
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