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 cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties 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 is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Borth and Talybont,the lease extension solicitors that we work with will always be happy 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 and Talybont valuers.
Kai owned a 2 bedroom apartment in Borth and Talybont on the market with a lease of fraction over sixty years unexpired. Kai on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2009 we were contacted by Dr Rachel Lewis who, having owned a studio apartment in Borth and Talybont in June 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Borth and Talybont with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 16 May 2093. Given that there were 68 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Ms A Wood completed a one bedroom apartment in Borth and Talybont in June 2009. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Borth and Talybont with 100 year plus lease were in the region of £213,600. The average amount of ground rent was £60 invoiced yearly. The lease expired in 2082. Given that there were 57 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.