It’s a harsh certainty that a Roath Park residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Roath Park property market.Where your lease has approximately 90 years left, you need to start thinking about 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 will be able to clarify whether you are eligibility. 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.
Leasehold premises in Roath Park with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Roath Park,the lease extension experts 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 Roath Park valuers.
Stanley owned a high value apartment in Roath Park on the market with a lease of just over fifty eight years outstanding. Stanley on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Chantelle Baker completed a first floor flat in Roath Park in April 2005. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar homes in Roath Park with a long lease were in the region of £255,000. The average ground rent payable was £50 collected monthly. The lease ran out in 2096. Having 70 years left we approximated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including fees.
Last year we were contacted by Ms Jasmine Adams , who owned a one bedroom apartment in Roath Park in May 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Roath Park with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2076. Given that there were 50 years as a residual term we approximated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of fees.