The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bargoed can extend the lease for an additional 90 years under statute. Please think carefully before delaying your Bargoed lease extension. Postponing that expense today simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold premises in Bargoed with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with handle 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.
Half a year ago Alexander, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Bargoed. Having bought his property two decades ago, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take action soon on a lease extension. Alexander arranged for a lease extension just ahead of time last July. Alexander and the freeholder subsequently agreed on a premium of £6,000 . If the lease had dropped to less than eighty years, the sum would have escalated by a minimum £875.
Mr and Mrs. E Simon owned a studio apartment in Bargoed in September 2004. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical properties in Bargoed with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2102. Considering the 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Dr O Bertrand was assigned a lease of a first floor flat in Bargoed in November 1997. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparable properties in Bargoed with a long lease were valued around £257,800. The average ground rent payable was £65 invoiced every twelve months. The lease ran out in 2091. Given that there were 65 years remaining we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.