Why you should start your Whitland lease extension
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Why you should start your Whitland lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/whitland">Whitland</a> lease depreciates with the years remaining on the lease.
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<p> Unfortunately that a Whitland residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Whitland property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Whitland will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
<h4>Whitland property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold residencies in Whitland with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Banks and Building Societies may not loan monies on a short lease</h4> Mortgage lenders are less likely to issue a loan offer on a domestic property in Whitland with a short lease. Many lenders simply refuse to lend on leases with below 75 years remaining.
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<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>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>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date 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>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<h4> Get in touch with one of our Whitland lease extension solicitors or enfranchisement solicitors
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The lawyers that we work with handle Whitland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
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Whitland Lease Extension Example Cases:
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<h5> Nathan, Whitland, Ammanford,</h5>
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Nathan was the the leasehold owner of a high value flat in Whitland being sold with a lease of a little over 59 years remaining. Nathan informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert advice and secured satisfactory deal informally and sell the flat.
<h5>Whitland case:</h5>
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Last month we were contacted by Mr and Mrs. G Howard , who
bought a garden flat in Whitland in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Whitland with a long lease were valued around £225,800. The average amount of ground rent was £60 billed yearly. The lease came to a finish on 27 May 2086. Given that there were 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus legals.
<h5>Whitland case:</h5>
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Last Summer we were e-mailed by Ms Isobel Brown , who
purchased a garden flat in Whitland in November 1999. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Whitland with a long lease were worth £210,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed on 19 July 2106. Considering the 80 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
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