Borth and Talybont leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Borth and Talybont will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Borth and Talybont with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Joshua owned a high value apartment in Borth and Talybont being marketed with a lease of a little over fifty eight years unexpired. Joshua informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2013 we were called by Ms S Jones who, having acquired a ground floor apartment in Borth and Talybont in February 2012. The question was if we could estimate the price could be for a ninety year lease extension. Identical properties in Borth and Talybont with a long lease were worth £181,600. The average ground rent payable was £55 billed quarterly. The lease terminated on 9 September 2077. Taking into account 52 years left we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.
Mr and Mrs. M Mitchell completed a studio flat in Borth and Talybont in October 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Borth and Talybont with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected quarterly. The lease concluded in 2097. Taking into account 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.