Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bargoed. Clearly, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Bargoed have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful attention before putting off your Bargoed lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
The lawyers that we work with procure Bargoed 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 conveyancer we work with provide it.
Subsequent to protracted correspondence with the landlord of her purpose-built flat in Bargoed, Shannon commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was finalised in August 2008. The landlord’s charges were restricted to below 700 pounds.
Mr Evan Campbell acquired a basement flat in Bargoed in February 2008. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable residencies in Bargoed with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed on 11 October 2095. Considering the 70 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2011 we were e-mailed by Dr D Baker who, having took over the lease of a purpose-built flat in Bargoed in April 1997. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical homes in Bargoed with a long lease were valued about £223,400. The mid-range ground rent payable was £60 billed annually. The lease termination date was in 2084. Given that there were 59 years left we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 not including professional charges.