Owning a apartment 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 fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bassaleg. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Bassaleg have the right to extend the lease for an additional 90 years in accordance with legislation. You should give due consideration before delaying your Bassaleg lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Bassaleg with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works |
Lease extensions in Bassaleg can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 procuring Bassaleg lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Lucas, started to get near to the 80-year mark with the lease on his leasehold flat in Bassaleg. In buying his flat 18 years ago, the length of the lease was of minimal significance. by good luck, he noticed he needed to take action soon on Extending the lease. Lucas was able to extend his lease at the eleventh hour last May. Lucas and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he not met the deadline, the premium would have escalated by at least £875.
Dr M Smith acquired a one bedroom apartment in Bassaleg in April 1999. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Bassaleg with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2098. Given that there were 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2012 we were contacted by Mr and Mrs. U Moreau who, having bought a one bedroom apartment in Bassaleg in May 2006. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable premises in Bassaleg with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2087. Considering the 61 years remaining we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus costs.