There is no doubt about it a leasehold property in Adamsdown is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Adamsdown will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Adamsdown with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Adamsdown can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Adamsdown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her ground floor flat in Adamsdown, Rachel started the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work completed in March 2014. The freeholder’s fees were restricted to approximately five hundred GBP.
Mr Y Laurent acquired a studio flat in Adamsdown in April 2008. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable residencies in Adamsdown with an extended lease were in the region of £200,800. The average ground rent payable was £65 billed monthly. The lease ran out on 21 November 2085. Having 60 years left we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
Last year we were phoned by Dr Rachael Martínez , who purchased a newly refurbished flat in Adamsdown in September 2000. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative homes in Adamsdown with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed quarterly. The lease concluded on 2 November 2096. Given that there were 71 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.