The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bargoed have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give careful consideration before delaying your Bargoed lease extension. Postponing the costs today simply increases the premium you will eventually be required to pay for a lease extension.
Leasehold properties in Bargoed with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Bargoed,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bargoed valuers.
After protracted negotiations with the landlord of her leasehold flat in Bargoed, Jessica commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The lease extension completed in August 2005. The landlord’s fees were restricted to less than 550 GBP.
In 2012 we were approached by Ms I Vincent who, having moved into a garden flat in Bargoed in February 2007. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable properties in Bargoed with a long lease were worth £216,000. The average ground rent payable was £60 invoiced monthly. The lease expired on 14 February 2084. Given that there were 58 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Mrs Y Collins purchased a garden flat in Bargoed in November 2002. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative homes in Bargoed with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2104. Having 78 years outstanding we calculated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 not including legals.