Cardiff Bay leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Cardiff Bay will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Cardiff Bay with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with undertake Cardiff Bay 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.
Freddie was the the leasehold owner of a high value flat in Cardiff Bay being marketed with a lease of a few days over 59 years outstanding. Freddie on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last month we were called by Ms Hollie Robinson , who completed a basement apartment in Cardiff Bay in May 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Cardiff Bay with a long lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2100. Given that there were 76 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2011 we were e-mailed by Dr F Carter who, having acquired a garden apartment in Cardiff Bay in March 1996. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Cardiff Bay with an extended lease were valued about £176,200. The average amount of ground rent was £65 invoiced monthly. The lease expiry date was on 18 October 2080. Having 56 years remaining we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus legals.