The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cathays can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Cathays lease extension. Shelving the costs today simply escalates the price you will eventually have to pay to extend the lease.
Leasehold properties in Cathays with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cathays can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Cathays lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold owner of a high value apartment in Cathays being sold with a lease of just over fifty eight years remaining. Harvey on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mrs N Gómez completed a purpose-built apartment in Cathays in January 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Cathays with an extended lease were in the region of £203,200. The mid-range ground rent payable was £65 collected annually. The lease concluded in 2087. Given that there were 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 not including legals.
Last month we were phoned by Dr S Robinson , who acquired a one bedroom apartment in Cathays in August 1997. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative premises in Cathays with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 11 February 2098. Considering the 72 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.