The re-sale value of a leasehold property in Hengoed is impacted by how long the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised well before the 80 year cut off point. Statute enables Hengoed qualifying lessees to an additional term of ninety years over and above the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hengoed,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hengoed valuers.
Theo was the the leasehold owner of a high value flat in Hengoed being sold with a lease of fraction over sixty years unexpired. Theo on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Spring we were called by Mrs Alexandra Torres , who completed a first floor flat in Hengoed in October 2001. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Hengoed with an extended lease were worth £270,000. The average amount of ground rent was £55 billed monthly. The lease expiry date was on 9 May 2099. Having 74 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Last Autumn we were phoned by Mr and Mrs. G Campbell , who acquired a studio apartment in Hengoed in April 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical premises in Hengoed with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease elapsed on 5 August 2079. Taking into account 54 years unexpired we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.