The re-sale value of a leasehold property in Aberbargoed is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year threshold. Statute entitles Aberbargoed qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (no ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Aberbargoed with in excess of one hundred years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with undertake Aberbargoed 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 lawyer we work with provide it.
Jayden was the the leasehold owner of a conversion flat in Aberbargoed on the market with a lease of just over 72 years remaining. Jayden on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jayden to exercise his statutory right. Jayden obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Dr Jamie Bernard was assigned a lease of a ground floor flat in Aberbargoed in September 2000. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar properties in Aberbargoed with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished in 2079. Having 53 years left we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus legals.
Mr and Mrs. C Gunderson owned a purpose-built apartment in Aberbargoed in January 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable premises in Aberbargoed with a long lease were valued about £218,000. The mid-range ground rent payable was £45 collected yearly. The lease ended in 2089. Considering the 63 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of fees.