The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Cardiff Bay have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do think carefully before delaying your Cardiff Bay lease extension. Shelving the costs now simply escalates the price you will eventually be required to pay for a lease extension.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Cardiff Bay leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a conversion apartment in Cardiff Bay on the market with a lease of fraction over 72 years remaining. Luca informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. E François moved into a one bedroom flat in Cardiff Bay in February 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical premises in Cardiff Bay with a long lease were worth £235,200. The average ground rent payable was £45 invoiced per annum. The lease expired in 2092. Considering the 66 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Last month we were e-mailed by Mrs F Roberts , who owned a ground floor flat in Cardiff Bay in June 2005. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Similar homes in Cardiff Bay with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2103. Having 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.