Main reasons to commence your Mynydd Isa lease extension
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Main reasons to start your Mynydd Isa lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/mynydd-isa">Mynydd Isa</a> leasehold property depreciates with the years remaining on the lease.
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Mynydd Isa leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Mynydd Isa residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Mynydd Isa you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Mynydd Isa leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Mynydd Isa with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lenders may decide not to lend with a short lease</h4> Banks and Building Societies have set criteria when lending monies secured on leasehold property. Many will simply refrain from lending at all once the remaining lease term falls below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are intending to remortgage your Mynydd Isa property.
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<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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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>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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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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What makes us experts in Mynydd Isa lease extensions?
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<p> Irrespective of whether you are a tenant or a freeholder in Mynydd Isa,the lease extension lawyers 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 Mynydd Isa valuers.
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Mynydd Isa Lease Extension Case Studies:
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<h5> Benjamin, Mynydd Isa, Flintshire</h5>
<p> Two years ago Benjamin, came very near to the 80-year mark with the lease on his purpose- built apartment in Mynydd Isa. In buying his flat two decades ago, the length of the lease was of minimal interest. Luckily, he recognised he needed to take steps soon on a lease extension. Benjamin arranged for a lease extension just in the nick of time in January. Benjamin and the freeholder in the end agreed on a premium of £6,000 . If the lease had dipped to less than eighty years, the amount would have escalated by a minimum £1,050.
<h5>Mynydd Isa case:</h5>
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In 2011 we were e-mailed by Mr Milo Miller who, having owned a one bedroom apartment in Mynydd Isa in October 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Mynydd Isa with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 7 November 2092. Having 66 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
<h5>Mynydd Isa case:</h5>
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In 2012 we were phoned by Mr and Mrs. T García who, having purchased a basement apartment in Mynydd Isa in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar premises in Mynydd Isa with a long lease were in the region of £275,000. The average ground rent payable was £55 collected every twelve months. The lease lapsed in 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
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