As the length of the unexpired term of a Roath Park residential lease diminished so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Roath Park will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
Lease extensions in Roath Park can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 a wealth of experience 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.
In 2014 Ethan, started to get close to the eighty-year threshold with the lease on his first floor flat in Roath Park. In buying his home two decades ago, the unexpired term was of minimal significance. Fortunately, he realised he needed to take steps soon on a lease extension. Ethan was able to extend his lease just in the nick of time last July. Ethan and the freeholder eventually settled on sum of £6,000 . If the lease had fallen lower than eighty years, the figure would have escalated by a minimum £1,075.
Last year we were phoned by Mr Nathan Morgan , who was assigned a lease of a ground floor flat in Roath Park in October 2003. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative premises in Roath Park with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended on 5 April 2091. Taking into account 66 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Summer we were contacted by Mr and Mrs. P Dupont , who acquired a ground floor flat in Roath Park in August 1998. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative premises in Roath Park with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2102. Considering the 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.