The market value of a leasehold property in Bargoed depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year mark. Statute entitles Bargoed qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Bargoed with more than 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Bargoed,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bargoed valuers.
In the wake of 9 months of unsuccessful discussions with the landlord of her studio flat in Bargoed, Maisie started the lease extension process just as her lease was coming close to the all-important 80-year threshold. The transaction was concluded in September 2007. The freeholder’s costs were negotiated to below 550 pounds.
In 2013 we were phoned by Mrs V Reed who, having completed a one bedroom apartment in Bargoed in June 2010. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Bargoed with 100 year plus lease were valued about £248,000. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed on 12 May 2088. Having 63 years remaining we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.
In 2010 we were approached by Mr and Mrs. N Reed who, having owned a one bedroom apartment in Bargoed in October 2011. We are asked if we could estimate the price would be for a ninety year lease extension. Similar premises in Bargoed with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 collected monthly. The lease finished on 3 March 2077. Considering the 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.