Unfortunately that a Hengoed residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Hengoed property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Most leasehold owners in Hengoed will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
The conveyancers that we work with undertake Hengoed 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 lawyer we work with provide it.
Theo was the the leasehold owner of a studio apartment in Hengoed being sold with a lease of fraction over 61 years remaining. Theo informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Ms Emma Richardson moved into a ground floor apartment in Hengoed in April 1999. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable premises in Hengoed with 100 year plus lease were valued around £225,400. The average ground rent payable was £45 collected every twelve months. The lease terminated in 2090. Taking into account 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including legals.
Last year we were contacted by Mrs B Gray , who completed a purpose-built flat in Hengoed in November 2010. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Hengoed with a long lease were in the region of £270,000. The average ground rent payable was £55 billed every twelve months. The lease expired on 21 October 2101. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.