Unfortunately that a Borth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Borth property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Borth will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Borth with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Borth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Borth valuers.
Off the back of protracted correspondence with the landlord of her ground floor flat in Borth, Paige initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was concluded in October 2005. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were contacted by Dr L Bertrand who, having acquired a one bedroom flat in Borth in February 1996. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Borth with a long lease were valued about £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease concluded on 15 January 2102. Considering the 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
In 2010 we were called by Mr Y Ricardo who, having was assigned a lease of a purpose-built flat in Borth in May 1999. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Borth with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced monthly. The lease concluded on 27 July 2082. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.