On the balance of probabilities where you own a flat in Radyr you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Radyr,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Radyr valuers.
Zachary owned a high value flat in Radyr being sold with a lease of fraction over fifty eight years left. Zachary informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert advice and secured satisfactory deal without going to tribunal and sell the property.
Mrs S Miller moved into a first floor apartment in Radyr in September 2001. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Radyr with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2103. Given that there were 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last Winter we were phoned by Mr N Johnson , who bought a one bedroom flat in Radyr in May 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Radyr with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 billed quarterly. The lease ended in 2083. Taking into account 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.