Cardiff Bay leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Cardiff Bay will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Cardiff Bay with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cardiff Bay,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cardiff Bay valuers.
Last October Daniel, came dangerously close to the eighty-year threshold with the lease on his first floor flat in Cardiff Bay. In buying his flat 18 years ago, the lease term was of little concern. Fortunately, he recognised he needed to take action soon on a lease extension. Daniel arranged for a lease extension at the eleventh hour last September. Daniel and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have escalated by at least £850.
Dr Thomas Bertrand completed a studio flat in Cardiff Bay in November 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Cardiff Bay with an extended lease were worth £200,800. The average ground rent payable was £65 billed monthly. The lease terminated in 2085. Given that there were 60 years remaining we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including professional charges.
Dr Kian Ramírez owned a newly refurbished flat in Cardiff Bay in May 2008. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Cardiff Bay with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated on 11 November 2096. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.