The only way is down when it comes to Adamsdown lease terms. Adamsdown flats that have a residual term lower than eighty years will reduce in market price even faster, and the cost to extend your lease will increase.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Adamsdown leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Caleb, started to get near to the eighty-year threshold with the lease on his garden flat in Adamsdown. In buying his flat two decades ago, the unexpired term was of no significance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Caleb arranged for a lease extension just under the wire last April. Caleb and the landlord in the end agreed on sum of £6,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £850.
Mr and Mrs. C Anderson moved into a one bedroom apartment in Adamsdown in July 2009. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar homes in Adamsdown with an extended lease were valued about £168,800. The average amount of ground rent was £60 billed monthly. The lease elapsed on 7 February 2081. Considering the 55 years remaining we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.
Mr Aiden Rodríguez owned a one bedroom flat in Adamsdown in May 2006. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparative premises in Adamsdown with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 billed per annum. The lease elapsed on 27 January 2092. Considering the 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.