Main reasons to commence your Thornaby lease extension
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Why you should commence your Thornaby lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/thornaby">Thornaby</a> lease depreciates with the years remaining on the lease.
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<p> The re-sale value of a leasehold property in Thornaby is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year mark. Current legislation entitles Thornaby qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension. <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Thornaby with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it. <h4>Banks and Building Societies may not lend with a short lease</h4>
The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.
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<tr><th>Lender</th>
<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>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>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>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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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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<h4> Get in touch with one of our Thornaby lease extension solicitors or enfranchisement solicitors
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Lease extensions in Thornaby can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Thornaby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
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Thornaby Lease Extension Case Summaries:
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<h5> Erin, Thornaby, County Durham,</h5>
<p> After unsuccessful negotiations with the freeholder of her studio apartment in Thornaby, Erin commenced the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in July 2011. The freeholder’s costs were kept to an absolute minimum.
<h5>Thornaby case:</h5>
<p> Dr Bethan Richardson purchased a ground floor apartment in Thornaby in August 2003. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Thornaby with 100 year plus lease were valued around £208,200. The average ground rent payable was £65 invoiced per annum. The lease termination date was on 3 October 2087. Considering the 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
<h5>Thornaby case:</h5>
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Last Autumn we were e-mailed by Mr H Phillips , who
purchased a recently refurbished apartment in Thornaby in August 2006. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical flats in Thornaby with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease lapsed on 22 June 2098. Taking into account 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
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