When it comes to residential leasehold property in Bargoed, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Bargoed with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Bargoed,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 Bargoed valuers.
Following protracted correspondence with the freeholder of her two bedroom apartment in Bargoed, Alisha initiated the lease extension process as the eighty year deadline was rapidly nearing. The legal work was concluded in March 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. H Pérez acquired a recently refurbished apartment in Bargoed in August 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar premises in Bargoed with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed on 27 February 2101. Given that there were 76 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2013 we were approached by Dr Melissa Flores who, having completed a garden flat in Bargoed in January 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Bargoed with an extended lease were worth £257,800. The mid-range ground rent payable was £65 collected yearly. The lease ran out in 2090. Taking into account 65 years remaining we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including fees.