On the balance of probabilities where you own a flat in Rhiwbina you actually own a long leasehold interest over your property
Leasehold premises in Rhiwbina with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 Rhiwbina can be a difficult process. We recommend you get guidance from a conveyancer 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 a wealth of experience procuring Rhiwbina lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her studio apartment in Rhiwbina, Rachael initiated the lease extension process as the 80 year mark was fast approaching. The lease extension was finalised in May 2010. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. S Bailey who, having completed a purpose-built apartment in Rhiwbina in November 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical flats in Rhiwbina with an extended lease were worth £233,200. The average amount of ground rent was £60 billed monthly. The lease ended on 12 March 2087. Considering the 61 years left we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
In 2011 we were called by Mr W Khan who, having was assigned a lease of a newly refurbished apartment in Rhiwbina in June 1997. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical flats in Rhiwbina with an extended lease were valued around £171,800. The average amount of ground rent was £55 billed every twelve months. The lease concluded on 17 April 2076. Given that there were 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.