The only way is down when it comes to Rhiwbina lease terms. Rhiwbina properties that have a residual term less than than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold premises in Rhiwbina with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rhiwbina can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 dealing with Rhiwbina lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the landlord of her garden flat in Rhiwbina, Isobel started the lease extension process just as the lease was nearing the critical eighty-year mark. The transaction was finalised in March 2011. The landlord’s charges were restricted to slightly above 450 pounds.
Last May we were called by Mr U Garcia , who moved into a one bedroom apartment in Rhiwbina in March 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical premises in Rhiwbina with a long lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended on 11 April 2087. Considering the 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including expenses.
Last Winter we were approach by Mr and Mrs. U Scott , who purchased a studio flat in Rhiwbina in July 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Rhiwbina with a long lease were valued about £174,200. The mid-range ground rent payable was £55 billed yearly. The lease finished in 2076. Taking into account 51 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.