It’s a harsh truth that a Cyncoed residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Cyncoed property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Cyncoed will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Cyncoed with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society |
Engaging our service gives you better control over the value of your Cyncoed leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aaron owned a conversion flat in Cyncoed being marketed with a lease of just over 61 years outstanding. Aaron informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last January we were approach by Mr and Mrs. B Mitchell , who acquired a newly refurbished apartment in Cyncoed in April 1999. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Cyncoed with a long lease were in the region of £186,000. The average ground rent payable was £65 collected quarterly. The lease ran out on 6 February 2084. Having 58 years outstanding we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 plus costs.
Last Summer we were approach by Dr Alicia Cook , who purchased a garden apartment in Cyncoed in July 1997. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical flats in Cyncoed with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 17 October 2095. Taking into account 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.