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Wednesday, June 17, 2009

Remortgage solicitors - Land can help you to sell a property

Your remortgage solicitors - As the housing market slumps are also looking for a house more ways to add value to their homes. But forget all magnolia and repainting "decluttering" if your property is rented, a relatively inexpensive way to promote the opportunities and the profitability of your home is to get their hands on the freehold.

The difference between the purchase of a lease and an absolute is very simple. If you purchase a freehold, not just to buy a property, but also the land on which it resides. With rent, you do not own the land, only the building, or even the floors, ceilings and interior walls. This is the case for most of the apartments, since in many cases what is below is another dish. You can, however, together with your neighbors, set up a company to buy the land, which then becomes the absolute share.

If only the buildings themselves are required to pay the annual ground rent to your landlord and you may have to pay the annual cost of service for maintenance of common areas.

The absolute value of the property depends on several factors. First, the type of property, prices in the area and the market situation as a whole. It is also necessary to take into account the value of 'interest - the amount of land rent is received and how the house will be worth at the end of the lease. The decisive factor is often how long the lease has not yet been executed. If it is more than 70 years, then it is very little value at all. However, as you descend below this will increase in value, as there is a need to extend or tenants or purchase the freehold.

Andrew Bulmer, a spokesman for the Royal Institution of Chartered Surveyors, says: "Given that the variables are significant, you can not specify the property value as a percentage of the absolute value of the house. He needs a specialist chartered surveyor to calculate it" .

Ultimately, the price offered will be a starting point from which to negotiate until you settle on a figure to compensate for the loss that the owner will suffer from the sales.

If you do not have the money to outright buy the freehold, you have two options for obtaining funding in order to make the purchase. "You can go to your lender for a further advance or remortgage completely," says Ray Boulger, technical director of mortgage broker John Charcol. "Both options are valid and which is most appropriate depends on your existing mortgage."

For those who have plenty of capital, is a feasible option and, considering the extremely low rates currently available for lending to low-value (LTV) mortgages, remortgaging may seem attractive. However, for those who already have a good mortgage deal with more than 75 percent LTV, completely remortgaging could be less interesting. This is because the new loan will push the VTL and then the interest rate with it. Still, the owner may increase the absolute value of the property, as well, and whether the loan to value ratio in place, the LTV would remain roughly the same.

When it comes to buy the freehold, the process varies depending on the type of property. For a house in which you or your family are the sole occupants, one can simply approach your landlord and negotiate the purchase of freehold.

If you live in a property with two or more apartments and want to set a freehold, you can follow a similar path, negotiating directly with the owner. But you also have the right to ask "collective enfranchisement". To do this, at least two thirds of tenants (whether there are only two apartments) must submit a petition to the owner to purchase the freehold. If you are unable to reach an amicable agreement with the owner, the dispute goes to the rental value in Court. This process is long and complicated, and support the legal costs of at least 500 pounds.

A property that is sold is absolute, in most cases, a more attractive to buyers. Mr Bulmer said: 'It is difficult to obtain a mortgage for a property that has a lease of 50 years or less. In this way it will be difficult for sellers to transfer ownership. In this case, it would be extremely advantageous to buy in total To be able to offer as part of your house for potential buyers. "

Melfyn Williams, a spokesman for the National Association of Estate Agents says: "The majority of properties are easier to sell when they are absolute rather than rent, but much will depend on the duration of the lease - for 999 years and then it is almost as good as absolute. "

Purchasing the absolute can also add value to your home, especially if the lease is running short. As Mr Williams said: "In most cases, it would be an added value by at least the amount paid for the freehold, if not more." However, this can be misleading. Sometimes the value of a property will be more or less the same with or without the absolute attachment, but the saleability of the property is a different matter. Property with a short lease are, in fact, unsalable, and therefore are worth little or nothing at all.

When it comes to apartments, the purchase of the freehold will share control of common areas of your property. "The main motivation is one of control," said Mr Bulmer. "Because of the way is the lease, the purchase of the absolute is unlikely to add value to an apartment. But a freeholder will have more control and better management could increase the property value of the property. It is not 'acquisition of an absolute in itself. "

Owning the freehold for your apartment can affect your property is considered by donors, although here the views are divided. Debbie Cocker-Brown, the head of a transfer Pepperells Solicitors, says: "More often than not has the absolute property is not added value to the creditor who wants to see that there is a management contract in place, ensuring the maintenance common areas. pacts you must be running and most lenders prefer to rent because this provides. "

But Mr Boulger argues that "there are cases of companies managing the service and do not do anything. It 'much more likely that the property should be maintained even if the property is collective freeholders that the other way. Therefore, if nothing else, this is favorable for the lenders. "

After purchasing the freehold, there are costs. You will be responsible for maintenance of common areas. For homes, this is less of a concern, but with this flat0s includes vital parts, such as corridors and outdoor spaces. You will no longer have to pay the service charge or rental, but these areas must be maintained in good condition to ensure that the property does not degrade in value.

Ultimately, it's a matter of weighing up what the rental costs against the price of the absolute. The cost of the lease is not just the service, ground rent, the terms of the lease and the obligations that you pay today, but also what might arise in the future. If the price of freedom is an absolute value from all these taxes could then be a good investment. As Mr Williams said: "Look at all the factors, but nine times out of 10, will be the right thing to do."


Remortgage Solicitors - Debt Management And The Economic Crisis

Your remortgage solicitors - The current credit crisis has all worried if their economic situation is really on solid ground. Many in the UK are more difficult to maintain the kind of lifestyle that they built for themselves and fear can actually start to fall.

However, there is hope and relief available. While interest rates are sky-stars and cost of living is also increasing, they often turn to a house that has always been a pretty sure thing, their homes. Equity has long been the saving grace of those in debt. A simple remortgage, and the problem is solved.

However, a remortgage is a way to truly transform the current economic climate? Many debt counselors say no. There are several options available for debt management. And while a remortgage is an option for those who can not secure a good rate for the time being, this can not be the best option.

management companies debt abound these days. A good online search or a short loop to the National Debt Line define some of the preconditions for giving an idea of what direction you may want to go and deal with mounting debt. Much will depend on the type of debt is a duty, or not guaranteed, the amount, £ 15,000 in base or more, and how many creditors are involved in your particular circumstance.

Do not hesitate to ask questions. You want to know immediately if the service of debt management is based payment or charity. You also want to know if you employ lawyers, or whether they are indeed a strictly advisory service, rising to determine your data after your specific needs.

Be sure to complete all your information before you sit down with a consultant debt management. It would be useful to have much of this information at hand before you call to make the first contact, as it will help to orient properly to the next step.

Do not lose hope. There is help available for your debt problems. Ring and ask questions until you find someone with whom you feel comfortable


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