Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Rhiwbina. Clearly, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Rhiwbina have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Please give due deliberation before putting off your Rhiwbina lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Rhiwbina with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rhiwbina can be a difficult process. We recommend you obtain guidance 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 in-depth market knowledge 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.
Last Winter Lucas, came dangerously close to the eighty-year threshold with the lease on his first floor flat in Rhiwbina. Having purchased his property two decades ago, the unexpired term was of minimal bearing. As luck would have it, he became aware that he would imminently be paying an inflated amount for a lease extension. Lucas arranged for a lease extension just under the wire in May. Lucas and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If the lease had slid to less than eighty years, the premium would have become more exhorbitant by at least £1,050.
Mr J Martínez bought a basement apartment in Rhiwbina in October 2002. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Rhiwbina with a long lease were in the region of £181,600. The average amount of ground rent was £55 invoiced annually. The lease ended in 2078. Having 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.
Mr and Mrs. A Moore owned a one bedroom flat in Rhiwbina in November 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Rhiwbina with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced per annum. The lease elapsed in 2098. Having 72 years left we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.