Why you should commence your Halifax lease extension
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Main reasons to commence your Halifax lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/halifax">Halifax</a> property value </h4>
<p> With a domestic leasehold property in Halifax, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Halifax with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has less than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due. <h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
<h4>Mortgage lenders may decide not to lend with a short lease</h4> Mortgage lenders have specific criteria when loaning funds secured on leasehold property. Many will simply not lend at all once an unexpired lease term slips lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Halifax property.
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<th> Requirement
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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>Godiva Mortgages</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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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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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Why use us for your lease extension in Halifax? </h4>
<p> Engaging our service will provide you better control over the value of your Halifax leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Halifax Lease Extension Example Cases:
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<h5> Freya, Halifax, West Yorkshire,</h5>
<p> Subsequent to lengthy discussions with the landlord of her studio flat in Halifax, Freya started the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was finalised in June 2006. The landlord’s fees were kept to an absolute minimum.
<h5>Halifax case:</h5>
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Last March we were phoned by Mr and Mrs. J Clarke , who
moved into a studio apartment in Halifax in September 1997. 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. Comparable premises in Halifax with a long lease were worth £191,400. The average ground rent payable was £55 collected yearly. The lease expiry date was on 15 April 2080. Considering the 54 years left we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including legals.
<h5>Halifax case:</h5>
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Last Christmas we were e-mailed by Dr Jasper Robinson , who
purchased a recently refurbished apartment in Halifax in July 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Halifax with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed on 28 October 2100. Taking into account 74 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
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