It’s an underpublicised certainty that a Roath Park residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Roath Park property market.Where your lease has approximately 90 years left, you should 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 slips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Roath Park will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Roath Park with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| TSB | |
| Yorkshire Building Society |
Using our service gives you enhanced control over the value of your Roath Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Leon, started to get near to the 80-year threshold with the lease on his garden flat in Roath Park. Having purchased his home 19 years previously, the length of the lease was of little relevance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Leon extended the lease just under the wire last March. Leon and the landlord ultimately settled on sum of £5,500 . If he not met the deadline, the amount would have gone up by a minimum £1,075.
In 2009 we were called by Mr and Mrs. V Ricardo who, having took over the lease of a basement flat in Roath Park in November 1996. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Roath Park with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed per annum. The lease finished in 2085. Taking into account 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus fees.
In 2012 we were phoned by Mr Harvey Martin who, having owned a ground floor flat in Roath Park in November 2009. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical premises in Roath Park with a long lease were valued about £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease terminated on 7 November 2096. Given that there were 70 years left we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 plus costs.