When it comes to residential leasehold property in Borth Y Gest, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Borth Y Gest with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has less than 80 years remaining, under the relevant statute the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Borth Y Gest with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Borth Y Gest leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her leasehold flat in Borth Y Gest, Caitlin commenced the lease extension process as the eighty year mark was rapidly approaching. The transaction was finalised in October 2006. The landlord’s fees were kept to an absolute minimum.
In 2011 we were approached by Mr M Martinez who, having owned a purpose-built flat in Borth Y Gest in February 1996. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in Borth Y Gest with a long lease were worth £255,000. The average ground rent payable was £50 billed per annum. The lease concluded on 4 August 2097. Considering the 71 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Dr Jasper Gómez acquired a one bedroom apartment in Borth Y Gest in August 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Borth Y Gest with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease ended on 7 May 2077. Given that there were 51 years as a residual term we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus fees.