The market value of a leasehold property in Borth Y Gest depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year mark. Current legislation entitles Borth Y Gest qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Borth Y Gest can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Borth Y Gest lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan owned a 2 bedroom apartment in Borth Y Gest being marketed with a lease of a few days over fifty eight years outstanding. Dylan on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were e-mailed by Mr G Stewart who, having was assigned a lease of a first floor apartment in Borth Y Gest in September 2006. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative premises in Borth Y Gest with a long lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2104. Considering the 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
In 2013 we were approached by Mr V Lee who, having purchased a one bedroom flat in Borth Y Gest in February 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable premises in Borth Y Gest with an extended lease were worth £186,000. The mid-range ground rent payable was £65 collected monthly. The lease ran out on 24 November 2084. Having 58 years left we estimated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 plus fees.