Hengoed residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide you increased control over the value of your Hengoed leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her garden flat in Hengoed, Lucy started the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was concluded in November 2010. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were approach by Ms R Fournier , who acquired a basement apartment in Hengoed in May 2011. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable flats in Hengoed with an extended lease were worth £198,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease elapsed on 28 October 2083. Having 59 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.
Last Summer we were called by Mr Michael Dupont , who owned a one bedroom flat in Hengoed in February 2004. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Hengoed with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease termination date was in 2094. Considering the 70 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.