Unfortunately that a Bedwas residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Bedwas property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Bedwas will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Bedwas with more than 100 years remaining 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 purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Bedwas can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 procuring Bedwas lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the landlord of her garden flat in Bedwas, Isabel started the lease extension process as the 80 year deadline was swiftly advancing. The lease extension completed in May 2014. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. N Wilson , who purchased a basement flat in Bedwas in September 1998. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable properties in Bedwas with an extended lease were in the region of £240,600. The average amount of ground rent was £60 collected every twelve months. The lease ended in 2086. Having 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
Last Summer we were phoned by Mr and Mrs. H Lefèvre , who bought a one bedroom apartment in Bedwas in April 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Bedwas with 100 year plus lease were valued about £174,200. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 21 September 2075. Having 51 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.