When it comes to domestic leasehold property in Bargoed, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years left. Anyone in Bargoed with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has under 80 years remaining, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Bargoed with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bargoed can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bargoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her ground floor flat in Bargoed, Katie initiated the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work completed in May 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. O Girard took over the lease of a purpose-built flat in Bargoed in May 2001. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Identical homes in Bargoed with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed in 2098. Having 73 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last month we were contacted by Mr and Mrs. Y Sharif , who owned a one bedroom apartment in Bargoed in August 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Bargoed with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2087. Taking into account 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.