Why you should commence your Tyldesley lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/tyldesley">Tyldesley</a> lease depreciates with the years remaining on the lease.
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<p> When it comes to long leasehold premises in Tyldesley, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Tyldesley with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has less than eighty years left, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due. <h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Tyldesley with more than one hundred years outstanding 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it. <h4>Banks and Building Societies may not loan monies with a short lease</h4> Many banks and building societies will be unwilling to lend on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will likely find it difficult to obtain a mortgage and this will result in your Tyldesley property being difficult to sell or refinance. <p>
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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>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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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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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<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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What makes us experts in Tyldesley lease extensions?
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<p> Using our service gives you increased control over the value of your Tyldesley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell.
The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Tyldesley Lease Extension Case Summaries:
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<h5> Gabriel, Tyldesley, Greater Manchester</h5>
<p> Last October Gabriel, came very near to the eighty-year mark with the lease on his purpose- built apartment in Tyldesley. Having bought his property twenty years ago, the unexpired term was of little bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Gabriel arranged for a lease extension just under the wire in June. Gabriel and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he not met the deadline, the premium would have gone up by a minimum £1,075.
<h5>Tyldesley case:</h5>
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Last Christmas we were called by Ms M Stewart , who
owned a purpose-built apartment in Tyldesley in January 2010. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Tyldesley with an extended lease were worth £275,000. The average ground rent payable was £45 collected annually. The lease terminated on 23 March 2095. Given that there were 69 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
<h5>Tyldesley case:</h5>
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In 2011 we were contacted by Mr Stanley Mercier who, having owned a one bedroom apartment in Tyldesley in April 1998. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Tyldesley with a long lease were valued around £216,000. The average amount of ground rent was £60 collected monthly. The lease finished on 1 June 2084. Considering the 58 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.
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