Main reasons to start your Penzance lease extension
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Main reasons to start your Penzance lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/penzance">Penzance</a> property value </h4>
<p> As the the remaining lease term of a Penzance domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Penzance will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
<h4>Lenders will not finance a property with a short lease</h4> Banks and building societies are really restricting their approach as regards to homes in Penzance with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus restricting the number of prospective purchasers.
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<tr><th>Lender</th>
<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>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start 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>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 Penzance? </h4>
<p> Engaging our service gives you better control over the value of your Penzance leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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>
Penzance Lease Extension Case Studies:
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<h5> Ellen, Penzance, Cornwall,</h5>
<p> Following unsuccessful correspondence with the landlord of her two bedroom apartment in Penzance, Ellen initiated the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was concluded in July 2009. The landlord’s fees were negotiated to slightly above 450 pounds.
<h5>Penzance case:</h5>
<p> Mr W Torres moved into a basement flat in Penzance in November 2003. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Identical residencies in Penzance with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2076. Taking into account 50 years unexpired we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of legals.
<h5>Penzance case:</h5>
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In 2013 we were phoned by Dr U Baker who, having moved into a one bedroom flat in Penzance in September 2005. The question was if we could approximate the price could be for a 90 year lease extension. Comparable homes in Penzance with an extended lease were valued around £208,200. The average amount of ground rent was £65 collected annually. The lease finished in 2087. Given that there were 61 years unexpired we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.
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