The market value of a leasehold property in Bargoed depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year threshold. Current legislation enables Bargoed qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Bargoed with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Lease extensions in Bargoed can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience procuring Bargoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her basement flat in Bargoed, Robyn started the lease extension process as the eighty year threshold was swiftly approaching. The legal work completed in October 2014. The freeholder’s fees were kept to an absolute minimum.
Dr I Harris took over the lease of a one bedroom apartment in Bargoed in January 2009. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative residencies in Bargoed with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 collected every twelve months. The lease terminated in 2078. Considering the 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Last year we were called by Dr Isabel Kelly , who bought a basement flat in Bargoed in May 2001. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Bargoed with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease lapsed on 23 July 2098. Considering the 72 years unexpired we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.