On the balance of probabilities if you own a flat in Cardiff Bay you actually own a long leasehold interest over your property
Leasehold premises in Cardiff Bay with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide 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 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.
In the wake of eight months of protracted negotiations with the freeholder of her studio flat in Cardiff Bay, Eleanor commenced the lease extension process as the eighty year threshold was fast nearing. The lease extension was finalised in July 2014. The freeholder’s charges were restricted to below 500 pounds.
In 2011 we were e-mailed by Mr and Mrs. G Lefèvre who, having was assigned a lease of a newly refurbished apartment in Cardiff Bay in September 1999. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar homes in Cardiff Bay with a long lease were valued around £261,600. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2076. Having 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus professional charges.
Ms N Young was assigned a lease of a basement apartment in Cardiff Bay in October 2000. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Cardiff Bay with an extended lease were in the region of £218,000. The average ground rent payable was £45 collected annually. The lease elapsed in 2087. Taking into account 63 years outstanding we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus professional charges.