It’s a harsh truth that a Hengoed residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Hengoed property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Hengoed will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Hengoed,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hengoed valuers.
Half a year ago Alfie, started to get near to the 80-year mark with the lease on his one bedroom apartment in Hengoed. In buying his property two decades ago, the length of the lease was of little interest. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Alfie was able to extend his lease just under the wire last April. Alfie and the freeholder eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £1,050.
Ms Sophie Patel was assigned a lease of a garden flat in Hengoed in November 1995. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Hengoed with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 8 July 2105. Taking into account 79 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last month we were e-mailed by Mr and Mrs. B Bailey , who was assigned a lease of a purpose-built flat in Hengoed in July 2007. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical residencies in Hengoed with an extended lease were worth £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2085. Having 59 years remaining we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.