Bargoed leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Bargoed will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bargoed with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bargoed can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Bargoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jonathan, came very close to the eighty-year threshold with the lease on his one bedroom apartment in Bargoed. Having purchased his home twenty years ago, the length of the lease was of little significance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Jonathan was able to extend his lease just under the wire last January. Jonathan and the freeholder in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,100.
In 2013 we were phoned by Mr and Mrs. D Martinez who, having acquired a basement flat in Bargoed in November 1997. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Bargoed with a long lease were valued around £208,600. The average ground rent payable was £60 collected quarterly. The lease expired on 12 February 2083. Given that there were 57 years unexpired we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.
Last year we were contacted by Mrs Megan Thompson , who acquired a newly refurbished apartment in Bargoed in March 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Bargoed with 100 year plus lease were worth £200,000. The average ground rent payable was £50 collected annually. The lease end date was in 2103. Taking into account 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.