On the balance of probabilities where you own a flat in Bargoed you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bargoed,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bargoed valuers.
Off the back of unsuccessful negotiations with the freeholder of her studio apartment in Bargoed, Kelsey commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The lease extension completed in September 2013. The freeholder’s fees were restricted to below five hundred pounds.
Mr and Mrs. N James completed a purpose-built apartment in Bargoed in February 1995. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical properties in Bargoed with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed on 5 January 2098. Given that there were 72 years remaining we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus costs.
Last year we were contacted by Mr and Mrs. C Watson , who completed a recently refurbished apartment in Bargoed in February 2010. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Bargoed with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 invoiced annually. The lease concluded on 14 July 2087. Considering the 61 years outstanding we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of legals.