As the the remaining lease term of a Borth domestic lease lessens so does its value and therefore the value of your property. Where the lease has, more than 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Borth will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Borth,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 valuers.
Two years ago Ali, came seriously near to the eighty-year mark with the lease on his studio flat in Borth. Having bought his property two decades ago, the unexpired term was of minimal interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Ali arranged for a lease extension at the eleventh hour in June. Ali and the landlord subsequently agreed on the final figure of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,025.
In 2010 we were e-mailed by Mrs T Smith who, having moved into a basement apartment in Borth in October 2008. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Borth with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced per annum. The lease ended on 19 October 2103. Having 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
Mr and Mrs. G Stewart owned a one bedroom flat in Borth in September 2003. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable homes in Borth with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 11 February 2083. Taking into account 57 years left we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.