Chances are that where you own a flat in Rhiwbina you actually own a long leasehold interest over your property
Leasehold premises in Rhiwbina with in excess of 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Rhiwbina,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rhiwbina valuers.
Noah was the the leasehold owner of a high value flat in Rhiwbina being sold with a lease of a little over sixty years unexpired. Noah on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Ms Stephanie Reed bought a first floor apartment in Rhiwbina in January 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Rhiwbina with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 20 January 2094. Considering the 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last month we were e-mailed by Mr and Mrs. D Richardson , who moved into a one bedroom flat in Rhiwbina in January 2005. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Rhiwbina with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected annually. The lease came to a finish on 23 February 2083. Considering the 58 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.