When it comes to residential leasehold premises in Borth and Talybont, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Leasehold owners in Borth and Talybont with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once a lease has below 80 years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Borth and Talybont with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Borth and Talybont can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 and Talybont lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Edward, came perilously near to the eighty-year mark with the lease on his leasehold apartment in Borth and Talybont. Having bought his home 18 years previously, the lease term was of little concern. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Edward arranged for a lease extension just under the wire in April. Edward and the landlord subsequently agreed on sum of £6,000 . If the lease had fallen below 80 years, the sum would have gone up by at least £1,025.
Dr B Flores purchased a garden flat in Borth and Talybont in January 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Borth and Talybont with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced monthly. The lease expired on 23 June 2087. Given that there were 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.
Last month we were contacted by Mrs Morgan Roux , who bought a one bedroom flat in Borth and Talybont in June 2004. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Identical premises in Borth and Talybont with a long lease were worth £171,800. The average amount of ground rent was £55 invoiced annually. The lease finished on 3 February 2076. Given that there were 50 years remaining we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.