With a domestic leasehold premises in Borth, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Borth with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years outstanding, under the current legislation the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Borth,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 in-depth market knowledge and the close ties they enjoy with Borth valuers.
Half a year ago Felix, started to get near to the eighty-year mark with the lease on his basement apartment in Borth. In buying his flat two decades ago, the unexpired term was of little bearing. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Felix was able to extend his lease at the eleventh hour in August. Felix and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If he had missed the deadline, the sum would have become more costly by a minimum £975.
In 2013 we were approached by Mr and Mrs. N Smith who, having bought a one bedroom flat in Borth in January 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Borth with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed annually. The lease concluded in 2087. Having 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus expenses.
Ms Elizabeth Norbert purchased a garden flat in Borth in June 2002. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable homes in Borth with a long lease were worth £260,000. The average ground rent payable was £50 billed monthly. The lease lapsed on 27 March 2098. Taking into account 73 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.