It’s an underpublicised truth that a Adamsdown 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 early years due to the loss of value being disguised by increases in the Adamsdown property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops under 80 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. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Adamsdown will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Adamsdown with more than one hundred years unexpired 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Adamsdown can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience 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.
In recent months Riley, came very near to the eighty-year threshold with the lease on his ground floor apartment in Adamsdown. In buying his property twenty years previously, the lease term was of little bearing. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Riley arranged for a lease extension just under the wire last March. Riley and the landlord ultimately settled on sum of £5,000 . If he not met the deadline, the premium would have increased by at least £900.
Mrs Katie Taylor bought a garden flat in Adamsdown in February 2002. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Adamsdown with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed monthly. The lease ended in 2088. Given that there were 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.
In 2012 we were called by Mr I Martin who, having owned a one bedroom flat in Adamsdown in March 2010. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical flats in Adamsdown with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 invoiced monthly. The lease expired on 1 July 2099. Taking into account 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.