Chances are that where you own a flat in Borth and Talybont you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kai was the the leasehold proprietor of a conversion apartment in Borth and Talybont on the market with a lease of fraction over fifty eight years outstanding. Kai on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert advice and secured an acceptable deal informally and sell the flat.
Last Christmas we were phoned by Ms U Bernard , who was assigned a lease of a studio flat in Borth and Talybont in April 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar flats in Borth and Talybont with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed on 19 May 2096. Considering the 71 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
In 2010 we were called by Dr F Ward who, having moved into a studio apartment in Borth and Talybont in July 2007. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical premises in Borth and Talybont with 100 year plus lease were in the region of £230,800. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2085. Having 60 years outstanding we estimated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 not including costs.