Why you should start your Borth lease extension

Why you should commence your Borth lease extension today:

A Borth leasehold property depreciates with the years remaining on the lease.

On the balance of probabilities if you own a flat in Borth you actually own a long leasehold interest over your property

Borth property with a lease extension is almost the same value as a freehold

Leasehold properties in Borth with in excess of one hundred years outstanding on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not finance a property on a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold homes. Some will simply refuse lend at all once an unexpired lease term falls beneath a specified unexpired lease term. Many Lending institutions will not regard property with a remaining term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are intending to remortgage your Borth property.

Get in touch with one of our Borth lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Borth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Borth Lease Extension Example Cases:

Sophia, Borth, Aberaeron,

Following unsuccessful discussions with the landlord of her leasehold apartment in Borth, Sophia commenced the lease extension process as the eighty year mark was fast advancing. The transaction was finalised in February 2005. The landlord’s fees were negotiated to less than 500 pounds.

Borth case:

Mr Adam Carter bought a studio apartment in Borth in April 1998. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Borth with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced per annum. The lease expired on 28 February 2097. Considering the 71 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.

Borth case:

Last month we were contacted by Dr M Leroy , who took over the lease of a ground floor apartment in Borth in October 1999. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical homes in Borth with an extended lease were in the region of £246,800. The average amount of ground rent was £60 invoiced yearly. The lease concluded on 10 August 2076. Having 50 years remaining we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of legals.