The market value of a leasehold property in Adamsdown is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded prior to the eighty year mark. Current legislation enables Adamsdown qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Adamsdown with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Adamsdown can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Adamsdown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the freeholder of her leasehold apartment in Adamsdown, Sophia started the lease extension process as the eighty year deadline was rapidly nearing. The legal work was finalised in May 2010. The freeholder’s costs were negotiated to below 700 GBP.
Dr Sian Torres moved into a ground floor apartment in Adamsdown in August 1999. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar premises in Adamsdown with an extended lease were in the region of £242,600. The average ground rent payable was £45 invoiced every twelve months. The lease terminated in 2093. Having 67 years left we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of costs.
Mr and Mrs. L Martin was assigned a lease of a one bedroom flat in Adamsdown in February 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable flats in Adamsdown with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease expired in 2104. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.