Borth Y Gest leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Borth Y Gest will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Borth Y Gest leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Isaac, came seriously close to the 80-year mark with the lease on his leasehold flat in Borth Y Gest. In buying his flat 19 years ago, the lease term was of minimal importance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Isaac was able to extend his lease just under the wire last May. Isaac and the landlord subsequently agreed on an amount of £5,500 . If the lease had slid below eighty years, the figure would have become more costly by a minimum £925.
In 2012 we were contacted by Dr J Bonnet who, having moved into a purpose-built apartment in Borth Y Gest in August 2006. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical homes in Borth Y Gest with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected annually. The lease elapsed on 23 October 2080. Considering the 54 years outstanding we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
Last January we were phoned by Ms Isabelle Hill , who owned a purpose-built flat in Borth Y Gest in May 1999. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar flats in Borth Y Gest with 100 year plus lease were valued around £227,800. The average ground rent payable was £45 invoiced per annum. The lease expiry date was in 2091. Given that there were 65 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.