There is no doubt about it a leasehold flat or house in Roath Park is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. The majority of flat owners in Roath Park will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Roath Park with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Roath Park can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
During the course of the last few months Jason, came perilously close to the 80-year mark with the lease on his studio flat in Roath Park. Having purchased his home two decades ago, the unexpired term was of minimal interest. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Jason arranged for a lease extension just under the wire in September. Jason and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had slipped below eighty years, the premium would have escalated by at least £1,125.
Mrs Mia Thompson moved into a basement flat in Roath Park in May 2005. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Similar homes in Roath Park with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed yearly. The lease finished on 5 August 2101. Taking into account 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Winter we were e-mailed by Ms W David , who purchased a newly refurbished flat in Roath Park in September 2001. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Roath Park with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed on 11 September 2081. Considering the 56 years remaining we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.