Borth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Borth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Borth you should check if your lease has between seventy and 90 years left. There are good reasons why a Borth flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Borth can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Borth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew was the the leasehold owner of a conversion flat in Borth on the market with a lease of a few days over fifty eight years remaining. Matthew on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Spring we were contacted by Mr O Nguyen , who owned a newly refurbished flat in Borth in September 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Borth with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced annually. The lease end date was in 2098. Given that there were 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr Riley Norbert was assigned a lease of a newly refurbished apartment in Borth in July 2005. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Borth with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease finished in 2078. Having 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £41,800 and £48,400 exclusive of expenses.