For those whose Borth property is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold properties in Borth with in excess of 100 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Borth valuers.
Off the back of lengthy negotiations with the freeholder of her garden apartment in Borth, Mollie commenced the lease extension process just as the lease was nearing the all-important eighty-year mark. The transaction completed in February 2014. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Mrs Sarah Watson who, having bought a one bedroom apartment in Borth in August 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative premises in Borth with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated in 2083. Having 57 years as a residual term we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.
Mrs Zoe Scott bought a newly refurbished apartment in Borth in September 2008. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Borth with a long lease were valued about £245,000. The average ground rent payable was £45 collected annually. The lease finished in 2094. Taking into account 68 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.