Why you should start your Yarm 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/yarm">Yarm</a> leasehold property depreciates with the years remaining on the lease.
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<p> The closer a domestic lease in Yarm nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Yarm will meet the qualifying criteria; that being said a conveyancer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold premises in Yarm with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it. <h4>Lenders will not grant a mortgage on a short lease</h4> Many banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will consider lending on it. Even if you don't require a mortgage, you should keep in mind that it is probable that someone wishing to buy your property in the future might well do, so where they are unable to get a mortgage, then the market price of your property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to accept <p>
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<tr><th>Lender</th>
<th> Requirement
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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>Coventry Building Society</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>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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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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Why use us for your lease extension in Yarm? </h4>
<p> Regardless of whether you are a tenant or a landlord in Yarm,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Yarm valuers.
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Yarm Lease Extension Case Studies:
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<h5> Ethan, Yarm, County Durham,</h5>
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Ethan was the the leasehold owner of a 2 bedroom flat in Yarm on the market with a lease of fraction over sixty years outstanding. Ethan on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured an acceptable resolution informally and sell the property.
<h5>Yarm case:</h5>
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In 2010 we were e-mailed by Ms Georgina Scott who, having acquired a one bedroom flat in Yarm in February 1998. The question was if we could estimate the price would be to extend the lease by an additional years. Similar homes in Yarm with a long lease were valued about £223,400. The average ground rent payable was £60 billed monthly. The lease end date was in 2085. Given that there were 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 plus legals.
<h5>Yarm case:</h5>
<p> Mr and Mrs. U Wood owned a one bedroom flat in Yarm in September 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Yarm with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated in 2105. Having 79 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
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