The market value of a leasehold property in Roath Park is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed well before the eighty year threshold. Current legislation enables Roath Park qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Roath Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Roath Park valuers.
Last Christmas Samuel, came dangerously near to the eighty-year mark with the lease on his purpose- built apartment in Roath Park. In buying his property 18 years ago, the unexpired term was of minimal concern. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Samuel extended the lease just under the wire in August. Samuel and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had slid to less than eighty years, the price would have escalated by at least £850.
Mr and Mrs. M Brooks purchased a newly refurbished apartment in Roath Park in April 2002. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable residencies in Roath Park with a long lease were worth £215,600. The mid-range ground rent payable was £45 invoiced yearly. The lease finished on 4 January 2087. Given that there were 62 years outstanding we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.
Last Spring we were called by Ms Phoebe Garcia , who owned a purpose-built apartment in Roath Park in May 2011. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Roath Park with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished on 18 February 2098. Given that there were 73 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.