With a residential leasehold premises in Aberbargoed, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Anyone in Aberbargoed with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When a lease has under eighty years outstanding, under the current Act the landlord can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Aberbargoed with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Aberbargoed,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aberbargoed valuers.
Joseph owned a studio apartment in Aberbargoed being marketed with a lease of fraction over sixty years left. Joseph on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr Elizabeth Cook acquired a first floor flat in Aberbargoed in October 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Aberbargoed with 100 year plus lease were in the region of £227,800. The average ground rent payable was £45 collected quarterly. The lease elapsed in 2091. Taking into account 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.
Last Summer we were called by Ms Victoria Rodríguez , who purchased a first floor flat in Aberbargoed in October 1995. The question was if we could approximate the premium would be to extend the lease by 90 years. Identical residencies in Aberbargoed with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed monthly. The lease lapsed in 2102. Having 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.