As the length of the unexpired term of a Roath Park residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Roath Park will qualify for this right; however a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Roath Park can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Roath Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo was the the leasehold proprietor of a 2 bedroom flat in Roath Park being sold with a lease of just over fifty eight years outstanding. Milo informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. V Baker owned a studio apartment in Roath Park in July 2012. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Roath Park with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease terminated in 2090. Having 64 years outstanding we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus legals.
Ms V Parker owned a one bedroom apartment in Roath Park in October 2003. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Roath Park with an extended lease were worth £270,000. The average ground rent payable was £55 billed monthly. The lease expired on 7 September 2101. Given that there were 75 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.