The only way is down when it comes to Cardiff Bay lease terms. Cardiff Bay flats that have a lease term fewer than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will go up.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cardiff Bay can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Archie owned a high value flat in Cardiff Bay on the market with a lease of fraction over 61 years left. Archie informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Archie to invoke his statutory right. Archie procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr Austin Brooks purchased a garden apartment in Cardiff Bay in September 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Cardiff Bay with a long lease were valued around £290,000. The mid-range ground rent payable was £60 collected monthly. The lease termination date was on 6 March 2105. Given that there were 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last Christmas we were e-mailed by Mr Daniel Allen , who bought a one bedroom apartment in Cardiff Bay in February 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative flats in Cardiff Bay with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease termination date was in 2085. Given that there were 60 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including expenses.