Why you should start your Borth lease extension

Why you should start your Borth lease extension today:

A Borth leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Borth you actually own a long leasehold interest over your property

Borth property with a lease extension is almost the same value as a freehold

Leasehold residencies in Borth with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not finance a property on a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as inadequate for lending purposes.

Get in touch with one of our Borth lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Borth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Borth valuers.

Borth Lease Extension Example Cases:

Alexander, Borth, Aberaeron

In 2014 Alexander, came seriously close to the 80-year mark with the lease on his leasehold apartment in Borth. Having purchased his home 18 years previously, the length of the lease was of no importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Alexander was able to extend his lease just ahead of time last March. Alexander and the freeholder in the end agreed on an amount of £6,000 . If the lease had gone lower than 80 years, the premium would have become more costly by a minimum £925.

Borth case:

In 2013 we were approached by Mr and Mrs. D Phillips who, having owned a garden apartment in Borth in February 2003. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable homes in Borth with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 collected monthly. The lease terminated on 3 May 2101. Considering the 75 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Borth case:

Last year we were e-mailed by Dr Jacob Martinez , who took over the lease of a garden apartment in Borth in March 2004. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Identical flats in Borth with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out on 18 November 2080. Considering the 54 years left we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.