Unfortunately that a Borth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Borth property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Borth will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Borth with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Borth leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted correspondence with the landlord of her two bedroom flat in Borth, Tia started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was concluded in February 2005. The landlord’s charges were kept to an absolute minimum.
In 2009 we were called by Dr Ellen Vincent who, having owned a studio apartment in Borth in April 1998. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical homes in Borth with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease concluded on 25 October 2102. Taking into account 77 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Ms Amber Jones purchased a studio apartment in Borth in May 1999. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Borth with an extended lease were valued around £183,600. The average amount of ground rent was £65 invoiced yearly. The lease end date was in 2082. Considering the 57 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.