Why you should commence your Borth lease extension

Main reasons to start your Borth lease extension today:

Increase your lease and increase your Borth property value

The value of Borth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.

Lending institutions will not issue a mortgage on a short lease

Mortgage lenders have specific criteria when lending funds secured on leasehold homes. Many will simply refuse lend at all once the remaining lease term slips under a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below 75 years suitable security. As well as impacting your ability to sell, it is also relevant where you are wanting to refinance your Borth home.

What makes us experts in Borth lease extensions?

Engaging our service gives you increased control over the value of your Borth leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Borth Lease Extension Case Studies:

Dexter, Borth, Aberaeron

In recent months Dexter, came very close to the 80-year mark with the lease on his ground floor apartment in Borth. In buying his property two decades ago, the unexpired term was of little concern. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Dexter arranged for a lease extension at the eleventh hour last June. Dexter and the landlord ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £1,150.

Borth case:

In 2009 we were approached by Mr and Mrs. Y García who, having took over the lease of a one bedroom flat in Borth in August 2008. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Borth with 100 year plus lease were valued about £237,600. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded in 2093. Given that there were 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.

Borth case:

In 2011 we were approached by Mr and Mrs. U Cook who, having purchased a purpose-built apartment in Borth in July 2011. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Borth with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish in 2103. Considering the 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.