Unfortunately that a Rhiwbina residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Rhiwbina property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Most flat owners in Rhiwbina will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Rhiwbina with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service will provide you better control over the value of your Rhiwbina leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Samuel, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Rhiwbina. In buying his property two decades ago, the lease term was of no interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Samuel extended the lease at the eleventh hour in July. Samuel and the freeholder via the managing agents eventually settled on sum of £5,500 . If the lease had fallen lower than eighty years, the figure would have become more costly by a minimum £875.
Last February we were contacted by Mr Ben Miller , who acquired a one bedroom flat in Rhiwbina in September 2010. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative residencies in Rhiwbina with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated in 2106. Having 80 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Mrs O Flores purchased a garden apartment in Rhiwbina in August 1999. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Rhiwbina with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed on 20 June 2095. Having 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.