As the length of the unexpired term of a Cathays residential lease diminished so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Cathays will qualify for this right; however a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Cathays with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Cathays,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 experience and the close ties they enjoy with Cathays valuers.
Dylan was the the leasehold proprietor of a 2 bedroom apartment in Cathays being sold with a lease of a few days over 72 years remaining. Dylan on an informal basis approached his landlord a well known Manchester-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 subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last month we were approach by Dr P López , who was assigned a lease of a first floor flat in Cathays in March 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Cathays with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2082. Considering the 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of expenses.
Last Spring we were e-mailed by Mr Caleb David , who owned a one bedroom apartment in Cathays in October 2003. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Cathays with an extended lease were valued around £237,600. The mid-range ground rent payable was £45 billed per annum. The lease concluded on 26 October 2093. Considering the 67 years remaining we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.