The market value of a leasehold property in Cardiff Bay is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year cut off point. Leasehold Reform legislation enables Cardiff Bay qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention 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 residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Lease extensions in Cardiff Bay can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Cardiff Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Teddy, started to get near to the 80-year mark with the lease on his one bedroom apartment in Cardiff Bay. Having purchased his home two decades ago, the lease term was of little concern. Fortunately, he noticed he needed to take action soon on a lease extension. Teddy arranged for a lease extension just ahead of time last June. Teddy and the landlord in the end agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,075.
In 2014 we were e-mailed by Ms H Roberts who, having was assigned a lease of a studio apartment in Cardiff Bay in July 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable homes in Cardiff Bay with a long lease were in the region of £176,200. The average amount of ground rent was £65 collected per annum. The lease expired in 2081. Taking into account 56 years as a residual term we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including costs.
In 2013 we were phoned by Ms J Bertrand who, having moved into a basement apartment in Cardiff Bay in April 2003. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative flats in Cardiff Bay with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced annually. The lease terminated in 2092. Considering the 67 years as a residual term we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including fees.