Why you should commence your Borth lease extension

Why you should start your Borth lease extension today:

Increase your lease and increase your Borth property value

Borth leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Borth will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Borth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not finance a property on a short lease

Lending institutions have set criteria when loaning funds charged on leasehold property. Many will simply not lend at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years suitable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Borth home.

Why use us for your lease extension in Borth?

Engaging our service will provide you enhanced control over the value of your Borth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Borth Lease Extension Case Studies:

Harrison, Borth, Aberaeron,

Harrison was the the leasehold owner of a 2 bedroom flat in Borth being marketed with a lease of a little over 59 years outstanding. Harrison informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.

Borth case:

Last Summer we were phoned by Ms Jessica Miller , who owned a first floor flat in Borth in April 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Borth with an extended lease were valued around £191,000. The mid-range ground rent payable was £65 collected annually. The lease elapsed in 2084. Considering the 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus costs.

Borth case:

Last Autumn we were approach by Mr and Mrs. V Harris , who was assigned a lease of a one bedroom flat in Borth in September 2001. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar premises in Borth with an extended lease were valued around £250,000. The average ground rent payable was £50 collected yearly. The lease elapsed on 4 August 2095. Taking into account 69 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.