Short lease purchase and refinance
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by: sdigixmas
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Date: Sat, 3 Jul 2010 Time: 8:46 PM
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In the case of short lease mortgage finance if you are given an initial purchase price of 350, 000 pounds the lender will consider an initial advance of 60 per cent over a five year mortgage term. In such a case the lender will ask the valuer or surveyor to value the property that is based on its current 20 year lease and base it on a 15 year lease. This is generally applicable for a lease that is less than 30 years and there are similar criteria that are applicable for leases of other specific time periods too.
Another important point that should be taken into consideration is that in the case of a short lease mortgage the lenders are less likely to consider a property where the freeholder is unknown. Every lender wants to know who the freeholder is and this is the reason why he is so important for short lease mortgage transactions. The next question that the lender is going to ask is the location of the property and this in turn determines the short lease mortgage finance terms and conditions too.
There are many lenders who will only consider lending on a short lease that is granted by one of the large central London estates like the Grosvenor Estate, the Cadogan Estate or the Welcome Trust. There is also an option for you to finance a lease extension before your existing lease expires. You need to approach the existing money lender for an advance. The other option is that you can approach the new money lender who will consider this to be a remortgage. In such a case the lender will instruct for an approved panel valuer to value the property that is based on short lease and the mortgage offer will be based upon the future long lease valuation on the condition that once the funds are released the terms of the new long lease takes legal effect.
Thus, with the help of short lease mortgage advice from Belgravia Commercial you can take the advice of mortgage finance experts. These experts will guide you with every step and this is the reason why they are trusted and relied upon by many clients today. They help you get the maximum returns and help you with securing the finance that you require without hassles. For any kind of short lease mortgage finance you must take professional advice before you invest so that you benefit from the capital gains in the long run.
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To search out more about short lease mortgage and different types of property finances like bridging loans please go to Belgravia Commercial.
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