When it comes to long leasehold property in Roath Park, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Anyone in Roath Park with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under 80 years remaining, under the current statute the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you increased control over the value of your Roath Park leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Luca, started to get close to the eighty-year mark with the lease on his ground floor apartment in Roath Park. Having purchased his flat 19 years ago, the lease term was of no significance. Luckily, he became aware that he needed to take action soon on Extending the lease. Luca extended the lease just in the nick of time last August. Luca and the freeholder via the managing agents ultimately agreed on a premium of £6,000 . If he had missed the deadline, the price would have increased by at least £1,100.
Dr J Allen moved into a purpose-built apartment in Roath Park in September 1999. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative flats in Roath Park with a long lease were worth £210,600. The mid-range ground rent payable was £45 billed monthly. The lease ran out in 2088. Having 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.
In 2011 we were e-mailed by Mr and Mrs. G David who, having bought a one bedroom flat in Roath Park in September 2008. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Roath Park with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed on 26 April 2099. Given that there were 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.