There is no doubt about it a leasehold flat or house in Bargoed is a wasting asset as a result of the shortening lease. If the lease has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Bargoed will qualify for this right; that being said a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bargoed with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Virgin |
The conveyancing solicitors that we work with undertake 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.
John was the the leasehold proprietor of a studio flat in Bargoed on the market with a lease of a little over sixty years left. John on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr Ben Lewis took over the lease of a ground floor apartment in Bargoed in April 2007. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable flats in Bargoed with an extended lease were worth £233,200. The average amount of ground rent was £60 billed quarterly. The lease end date was on 28 June 2087. Considering the 61 years remaining we estimated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.
In 2012 we were approached by Mr and Mrs. E David who, having bought a basement flat in Bargoed in June 2001. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Bargoed with an extended lease were valued around £171,800. The mid-range ground rent payable was £55 billed quarterly. The lease lapsed in 2076. Given that there were 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.