The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rhiwbina can extend the lease for an additional 90 years under Leasehold Reform legislation. Please think carefully before delaying your Rhiwbina lease extension. Shelving the costs today simply increases the premium you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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 are not acceptable. 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; |
| 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 |
| Yorkshire Building Society | 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. |
Lease extensions in Rhiwbina can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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.
18 months ago Aarav, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Rhiwbina. In buying his property twenty years ago, the length of the lease was of little relevance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Aarav was able to extend his lease just under the wire last May. Aarav and the freeholder via the management company in the end settled on sum of £5,500 . If the lease had descended lower than 80 years, the price would have gone up by a minimum £1,025.
Mr and Mrs. R Flores purchased a newly refurbished apartment in Rhiwbina in January 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Rhiwbina with a long lease were valued around £280,000. The average amount of ground rent was £45 billed every twelve months. The lease ended on 18 November 2095. Having 69 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Winter we were phoned by Dr E Gómez , who owned a one bedroom flat in Rhiwbina in March 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Rhiwbina with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected annually. The lease elapsed in 2084. Given that there were 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.