Remortgage for ExtensionReturn payment for extension
00 to £210,000. I did this on the base of the authorized plan and the actual evaluation of the real estate, so I used the lower number.
Must I renew my rental agreement for a remortgage?
Extending a shorter rental is more costly, for instance, while if you sell your leased real estate you will be struggling to get interested customers if your rental is on the short side because mortgages financiers are reluctant to loan on shorter rental agreements. When a leasing contract for a real estate expires, its value decreases.
The reason for this is that a shortened rental contract means that the property moves nearer to the owner. How does a small leasehold work? Consequently, creditors will have demands as to how long the residual life of the leasing arrangement is reasonable. In order to give you an impression of the attitude of some creditors, the Leeds Building Society needs at least 85 years left on the date of filing, Halifax at least 70 years on the rental agreement and the National Building Society at least 55 years on the date of filing and at least 30 years at the end of the loan period.
There is a 55 year requirement for mortgages, with 30 years left at the end of the year. Briefly, while you probably won't have to renew your rental before repayment (unless it's dropped ludicrously low - which should never occur, as you should always renew before it gets close to the 85-year mark), the briefer your rental is, the more you restrict your mortgages on it.
In order to ensure that you can get the best mortgages business, first talk to a mortgages agent to see what would be available on your rental agreement.