Main reasons to start your Murton lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/murton">Murton</a> property value </h4>
<p> Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Murton. Clearly, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Murton have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before putting off your Murton lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Murton with more than one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it. <h4>Lending institutions may not issue a mortgage on a short lease</h4> Mortgage companies will not grant a mortgage on short residential leases. You most probably experience difficulties where you need to sell your flat in Murton if the unexpired lease term is below the criteria set by the majority of mortgage companies. Different lenders have different requirements but in the main they are looking for a minimum remaining lease term of 65 years.
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<tr><th>Lender</th>
<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>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Chelsea 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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<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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Why use us for your lease extension in Murton? </h4>
<p> Irrespective of whether you are a tenant or a freeholder in Murton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Murton valuers.
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Murton Lease Extension Example Cases:
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<h5> Charlie, Murton, County Durham,</h5>
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Charlie owned a high value flat in Murton on the market with a lease of fraction over fifty eight years unexpired. Charlie informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
<h5>Murton case:</h5>
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Last Winter we were phoned by Mr Leo Anderson , who
bought a first floor flat in Murton in March 2011. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparative premises in Murton with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease terminated in 2102. Taking into account 76 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
<h5>Murton case:</h5>
<p> Mr and Mrs. I Thomas took over the lease of a one bedroom apartment in Murton in February 2000. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Murton with 100 year plus lease were in the region of £252,800. The mid-range ground rent payable was £65 billed per annum. The lease ran out on 16 April 2091. Given that there were 65 years unexpired we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.
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