With a residential leasehold property in Borth Y Gest, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Leasehold owners in Borth Y Gest with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Borth Y Gest,the lease extension solicitors that we work with will always be willing 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 Y Gest valuers.
Following protracted correspondence with the freeholder of her first floor apartment in Borth Y Gest, Naomi initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was finalised in February 2008. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mr Kian Evans who, having bought a purpose-built apartment in Borth Y Gest in April 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Borth Y Gest with a long lease were valued about £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded in 2094. Having 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last Spring we were phoned by Mr and Mrs. P Rose , who took over the lease of a basement flat in Borth Y Gest in June 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Borth Y Gest with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed per annum. The lease terminated in 2105. Taking into account 80 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.