When it comes to residential leasehold premises in Bargoed, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Bargoed with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has fewer than 80 years outstanding, under the current statute the landlord can calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Bargoed leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her basement flat in Bargoed, Daisy started the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was finalised in October 2011. The freeholder’s fees were kept to an absolute minimum.
Ms K Walker bought a first floor apartment in Bargoed in February 1997. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar homes in Bargoed with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 8 June 2105. Having 79 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Autumn we were called by Mr and Mrs. K Murphy , who purchased a basement flat in Bargoed in July 1996. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar premises in Bargoed with an extended lease were in the region of £275,000. The average ground rent payable was £65 billed per annum. The lease finished in 2094. Considering the 68 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.