Top reasons for Forest of Dean lease extension
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Main reasons to commence your Forest of Dean lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/forest-of-dean">Forest of Dean</a> property value </h4>
<p> The market value of Forest of Dean leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than eighty years
<h4>Forest of Dean property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
<h4>Mortgage lenders may not loan monies with a short lease</h4> Banks and building societies do not grant a mortgage on short residential leases. You most probably encounter problems where you need to sell your flat in Forest of Dean if the unexpired lease term is less than the criteria set by most mortgage companies. Different mortgage companies have different requirements but in the main they are looking for a minimum remaining lease term of 65 years.
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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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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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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Why use us for your lease extension in Forest of Dean? </h4>
<p> Using our service gives you better control over the value of your Forest of Dean leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Forest of Dean Lease Extension Case Summaries:
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<h5> Alisha, Forest of Dean, Gloucestershire,</h5>
<p> Trailing unsuccessful discussions with the landlord of her garden flat in Forest of Dean, Alisha commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension completed in September 2009. The landlord’s fees were restricted to under 600 pounds.
<h5>Forest of Dean case:</h5>
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Last year we were contacted by Mr and Mrs. J Lee , who
owned a one bedroom apartment in Forest of Dean in September 2003. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical properties in Forest of Dean with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded in 2102. Having 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
<h5>Forest of Dean case:</h5>
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In 2013 we were called by Mrs I Sánchez who, having completed a garden apartment in Forest of Dean in July 1997. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable properties in Forest of Dean with a long lease were valued around £176,200. The average amount of ground rent was £65 invoiced monthly. The lease ended on 5 April 2082. Taking into account 56 years unexpired we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of legals.
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