Borth Y Gest leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Borth Y Gest residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Borth Y Gest you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Borth Y Gest with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Borth Y Gest,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Borth Y Gest valuers.
Following protracted negotiations with the landlord of her ground floor flat in Borth Y Gest, Hollie commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was finalised in April 2006. The freeholder’s costs were restricted to about 450 pounds.
Last Winter we were contacted by Ms H Lee , who owned a one bedroom flat in Borth Y Gest in October 1999. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Borth Y Gest with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease finished on 28 March 2101. Given that there were 76 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
In 2013 we were called by Mr and Mrs. E Leroy who, having moved into a one bedroom apartment in Borth Y Gest in July 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Borth Y Gest with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended in 2081. Given that there were 56 years outstanding we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.