Bargoed leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Bargoed enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bargoed you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The conveyancing solicitors that we work with procure Bargoed lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted negotiations with the landlord of her basement flat in Bargoed, Kayleigh commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension was concluded in October 2015. The landlord’s fees were negotiated to less than six hundred pounds.
In 2011 we were phoned by Dr Sam Davis who, having took over the lease of a garden apartment in Bargoed in January 2010. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar premises in Bargoed with 100 year plus lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 15 March 2080. Given that there were 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus legals.
Last Winter we were e-mailed by Dr Anna Moore , who acquired a first floor flat in Bargoed in November 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative residencies in Bargoed with a long lease were worth £295,000. The average ground rent payable was £45 billed monthly. The lease elapsed in 2100. Considering the 74 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.