Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Adamsdown. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Adamsdown have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. You should give due consideration before putting off your Adamsdown lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Adamsdown with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Adamsdown lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to lengthy correspondence with the landlord of her two bedroom flat in Adamsdown, Lucy commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension was concluded in March 2005. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were phoned by Mr Seth François who, having purchased a one bedroom flat in Adamsdown in August 2011. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Similar homes in Adamsdown with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 13 November 2104. Given that there were 79 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Mrs J Reed owned a basement flat in Adamsdown in April 2002. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Adamsdown with an extended lease were valued about £193,400. The average ground rent payable was £65 billed annually. The lease came to a finish on 4 February 2084. Having 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.