The re-sale value of a leasehold property in Bargoed is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year cut off point. Statute enables Bargoed qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Bargoed with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start 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.
Tyler was the the leasehold proprietor of a studio apartment in Bargoed being marketed with a lease of a few days over sixty years outstanding. Tyler informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were e-mailed by Ms F Leroy , who took over the lease of a ground floor flat in Bargoed in November 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Bargoed with a long lease were valued about £295,000. The average ground rent payable was £45 billed annually. The lease expired in 2099. Considering the 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2014 we were phoned by Mr and Mrs. C Carter who, having was assigned a lease of a garden apartment in Bargoed in January 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Bargoed with 100 year plus lease were worth £248,000. The mid-range amount of ground rent was £65 billed yearly. The lease ended on 12 June 2088. Having 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including costs.