Top reasons for Redruth 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/redruth">Redruth</a> property value </h4>
<p> The market value of Redruth 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 below than 80 years
<h4>Redruth property with a lease extension is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
<h4>Lenders may decide not to loan monies with a short lease</h4> Banks and building societies are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that a number of flats in Redruth were created in the fifties, sixties and seventies this means many now require lease extensions if they wish to obtain a mortgage.
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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>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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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>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>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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Why use us for your lease extension in Redruth? </h4>
<p> Using our service will provide you better control over the value of your Redruth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell.
The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Redruth Lease Extension Example Cases:
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<h5> Charlie, Redruth, Cornwall</h5>
<p> In recent months Charlie, came precariously close to the eighty-year mark with the lease on his first floor apartment in Redruth. In buying his property 19 years ago, the lease term was of minimal concern. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Charlie was able to extend his lease just in the nick of time in April. Charlie and the landlord subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,025.
<h5>Redruth case:</h5>
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In 2013 we were phoned by Mrs Hollie Thompson who, having was assigned a lease of a studio apartment in Redruth in April 2006. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Redruth with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 billed annually. The lease elapsed on 8 September 2084. Taking into account 58 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
<h5>Redruth case:</h5>
<p> Dr Nicole André took over the lease of a basement flat in Redruth in August 1999. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar homes in Redruth with a long lease were in the region of £200,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 21 September 2104. Given that there were 78 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
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