The market value of a leasehold property in Adamsdown depends on how long the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation enables Adamsdown qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Adamsdown with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 undertake 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.
After lengthy correspondence with the landlord of her first floor flat in Adamsdown, Sophia commenced the lease extension process as the eighty year mark was rapidly approaching. The legal work was finalised in September 2008. The landlord’s charges were kept to an absolute minimum.
Mr Leon Wilson completed a purpose-built apartment in Adamsdown in November 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical properties in Adamsdown with an extended lease were worth £255,000. The average amount of ground rent was £50 billed per annum. The lease concluded in 2096. Given that there were 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last June we were approach by Mr and Mrs. R Sharif , who bought a studio flat in Adamsdown in April 2003. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical flats in Adamsdown with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed on 11 November 2076. Taking into account 50 years unexpired we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of legals.