Borth leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Borth will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Borth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Borth valuers.
Two years ago Riley, came perilously close to the 80-year threshold with the lease on his two bedroom flat in Borth. Having purchased his property two decades ago, the length of the lease was of no concern. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Riley extended the lease just ahead of time last August. Riley and the freeholder in the end settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,000.
Last July we were e-mailed by Mr and Mrs. A Girard , who owned a ground floor apartment in Borth in October 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in Borth with a long lease were valued about £245,000. The average ground rent payable was £45 collected per annum. The lease concluded on 17 October 2094. Considering the 68 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Last Winter we were contacted by Dr C Ramírez , who moved into a purpose-built flat in Borth in April 2000. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar residencies in Borth with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out in 2105. Having 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.