The market value of Borth and Talybont leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is below than eighty years
Leasehold properties in Borth and Talybont with in excess of one hundred years left 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Borth and Talybont leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas was the the leasehold proprietor of a studio apartment in Borth and Talybont on the market with a lease of fraction over sixty years remaining. Thomas on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Dr Y Turner was assigned a lease of a one bedroom apartment in Borth and Talybont in January 1996. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar residencies in Borth and Talybont with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease finished on 8 October 2099. Taking into account 73 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last July we were approach by Mr and Mrs. C Vincent , who purchased a basement flat in Borth and Talybont in May 2002. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative flats in Borth and Talybont with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £65 billed quarterly. The lease finished in 2088. Given that there were 62 years unexpired we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.