Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bargoed. Clearly, the term of lease left shortens over time. This is often ignored and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Bargoed have the right to extend the lease for an additional 90 years under statute. Please give due deliberation before putting off your Bargoed lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Bargoed with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Santander | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
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 conveyancing solicitor we work with provide it.
Joshua was the the leasehold proprietor of a 2 bedroom flat in Bargoed on the market with a lease of a few days over 59 years remaining. Joshua on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. W Wilson bought a purpose-built apartment in Bargoed in June 2005. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar residencies in Bargoed with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected per annum. The lease terminated on 25 March 2099. Having 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Mr and Mrs. L Petit bought a first floor apartment in Bargoed in October 1998. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Bargoed with 100 year plus lease were worth £240,600. The average ground rent payable was £65 collected annually. The lease ended in 2088. Taking into account 62 years outstanding we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.