The market value of a leasehold property in Bargoed depends on how many years the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised ahead of the 80 year threshold. Current legislation enables Bargoed qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Engaging our service will provide you increased control over the value of your Bargoed 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Toby, started to get near to the eighty-year mark with the lease on his first floor flat in Bargoed. Having purchased his property two decades ago, the lease term was of minimal interest. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Toby arranged for a lease extension just in the nick of time last January. Toby and the freeholder ultimately settled on sum of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £975.
Last Autumn we were contacted by Dr Matthew Sharif , who owned a newly refurbished apartment in Bargoed in July 1998. 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 flats in Bargoed with an extended lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2076. Given that there were 50 years left we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.
Last Winter we were approach by Dr Lewis Davies , who completed a newly refurbished apartment in Bargoed in March 2009. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable residencies in Bargoed with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded in 2096. Taking into account 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.