Rhiwbina leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Rhiwbina enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rhiwbina you would be well advised to check if your lease has between 70 and ninety years remaining. There are good reasons why a Rhiwbina leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in Rhiwbina with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Rhiwbina lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following unsuccessful correspondence with the freeholder of her garden apartment in Rhiwbina, Danielle started the lease extension process just as the lease was nearing the critical 80-year mark. The legal work was concluded in January 2010. The landlord’s charges were kept to an absolute minimum.
In 2012 we were called by Dr Aiden Clarke who, having completed a newly refurbished apartment in Rhiwbina in August 1997. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Rhiwbina with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 20 May 2105. Taking into account 80 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Last September we were approach by Dr C Gómez , who acquired a first floor flat in Rhiwbina in September 1996. The question was if we could estimate the price would be for a ninety year lease extension. Comparable properties in Rhiwbina with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 18 January 2094. Having 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.