Cardiff Bay Lease Extension - Free Consultation

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Top reasons for Cardiff Bay lease extension

Top reasons for lease extension now:

A Cardiff Bay leasehold property depreciates with the years remaining on the lease.

Cardiff Bay leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Cardiff Bay tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Cardiff Bay you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

Cardiff Bay property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.

Mortgage lenders may decide not to loan monies with a short lease

Lenders are really clamping down as regards to homes in Cardiff Bay with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of potential purchasers.

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.
Chelsea 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.
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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Cardiff Bay lease extensions?

Engaging our service gives you enhanced control over the value of your Cardiff Bay leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Cardiff Bay Lease Extension Example Cases:

Luca, Cardiff Bay, Cardiff,

Luca was the the leasehold proprietor of a studio apartment in Cardiff Bay being marketed with a lease of fraction over 72 years unexpired. Luca informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Cardiff Bay case:

Dr B Taylor bought a ground floor apartment in Cardiff Bay in October 2000. We are asked if we could approximate the price could be for a ninety year lease extension. Similar homes in Cardiff Bay with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended on 4 April 2084. Taking into account 63 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus fees.

Cardiff Bay case:

In 2011 we were contacted by Dr I Bell who, having purchased a first floor apartment in Cardiff Bay in November 2011. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparable premises in Cardiff Bay with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 collected annually. The lease expired on 27 May 2095. Given that there were 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.