It’s an underpublicised truth that a Roath Park residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Roath Park property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Roath Park will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| Santander | |
| Virgin |
The conveyancing solicitors that we work with procure Roath Park 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 conveyancer we work with provide it.
In recent months Jayden, came perilously close to the 80-year threshold with the lease on his studio apartment in Roath Park. In buying his home two decades ago, the unexpired term was of no relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Jayden was able to extend his lease at the eleventh hour last January. Jayden and the freeholder via the management company ultimately agreed on sum of £5,500 . If the lease had fallen below 80 years, the sum would have increased by at least £950.
In 2011 we were approached by Mr and Mrs. W Johnson who, having acquired a ground floor apartment in Roath Park in October 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Roath Park with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 collected monthly. The lease finished on 26 April 2077. Having 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus professional charges.
Ms Niamh Miller was assigned a lease of a studio apartment in Roath Park in October 1998. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical residencies in Roath Park with a long lease were valued around £210,600. The average ground rent payable was £45 billed monthly. The lease concluded in 2088. Considering the 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.