The market value of Hengoed leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
Leasehold premises in Hengoed with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Hengoed,the lease extension experts that we work with will always be prepared 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.
Following unsuccessful correspondence with the landlord of her ground floor apartment in Hengoed, Georgina started the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was finalised in April 2010. The landlord’s costs were negotiated to slightly above 700 GBP.
Last Spring we were approach by Mr and Mrs. J Nguyen , who purchased a ground floor flat in Hengoed in November 1995. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Identical flats in Hengoed with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed in 2087. Considering the 62 years unexpired we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
Last Winter we were called by Dr C Scott , who acquired a one bedroom apartment in Hengoed in June 2000. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Hengoed with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed in 2098. Having 73 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.