It’s a harsh truth that a Borth and Talybont residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Borth and Talybont property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying 50% 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 additional value that a lease extension will add the property The majority of leasehold owners in Borth and Talybont will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases 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 conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Borth and Talybont with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Borth and Talybont 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 lawyer we work with provide it.
Last year Sam, came dangerously close to the eighty-year threshold with the lease on his garden apartment in Borth and Talybont. In buying his home twenty years ago, the lease term was of no concern. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Sam was able to extend his lease just under the wire in January. Sam and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,050.
Dr T Edwards was assigned a lease of a ground floor apartment in Borth and Talybont in November 1997. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Borth and Talybont with a long lease were valued about £196,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease terminated in 2080. Taking into account 54 years remaining we calculated the premium to the landlord for the lease extension to be within £35,200 and £40,600 plus costs.
Last Summer we were e-mailed by Ms T White , who purchased a first floor flat in Borth and Talybont in February 2000. The question was if we could estimate the price could be for a ninety year lease extension. Identical flats in Borth and Talybont with a long lease were worth £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease expired on 20 September 2100. Having 74 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.