Unfortunately that a Roath Park residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Roath Park property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Roath Park will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging 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 wish 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.
Trailing protracted correspondence with the freeholder of her studio flat in Roath Park, Lily commenced the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in June 2015. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. C Gunderson was assigned a lease of a purpose-built flat in Roath Park in November 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative homes in Roath Park with an extended lease were valued around £166,400. The average ground rent payable was £60 invoiced monthly. The lease expired on 23 March 2080. Considering the 54 years left we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
Dr H Davis owned a recently refurbished apartment in Roath Park in May 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Roath Park with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease termination date was on 25 March 2091. Considering the 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.