The market value of Roath Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than eighty years
Leasehold properties in Roath Park with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Roath Park leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James owned a conversion flat in Roath Park on the market with a lease of fraction over 72 years remaining. James informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were James to exercise his statutory right. James obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr Y Simon purchased a garden flat in Roath Park in July 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative residencies in Roath Park with 100 year plus lease were valued around £191,000. The average amount of ground rent was £65 billed per annum. The lease concluded on 3 September 2084. Taking into account 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including expenses.
Dr B Clark completed a garden flat in Roath Park in April 2002. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative flats in Roath Park with a long lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease expiry date was on 4 May 2095. Taking into account 69 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.