The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Borth can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Borth lease extension. Postponing that expense today simply increases the premium you will ultimately be required to pay to extend the lease.
Leasehold residencies in Borth with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Borth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Matthew, came precariously near to the 80-year threshold with the lease on his one bedroom apartment in Borth. In buying his property two decades ago, the length of the lease was of no bearing. by good luck, he noticed he needed to take steps soon on Extending the lease. Matthew extended the lease just under the wire last June. Matthew and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had dropped below eighty years, the price would have increased by a minimum £1,125.
Last Christmas we were called by Mr and Mrs. R David , who bought a ground floor flat in Borth in September 1998. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in Borth with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 26 June 2106. Given that there were 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last September we were contacted by Mr N Dupont , who purchased a recently refurbished apartment in Borth in June 1998. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Borth with an extended lease were worth £200,800. The average amount of ground rent was £65 collected per annum. The lease ran out in 2086. Considering the 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.