Cyncoed leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Cyncoed will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Cyncoed,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cyncoed valuers.
Trailing lengthy negotiations with the landlord of her garden flat in Cyncoed, Emma commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was concluded in February 2013. The landlord’s costs were kept to an absolute minimum.
Mrs E Ricardo was assigned a lease of a purpose-built apartment in Cyncoed in February 2007. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Cyncoed with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 collected per annum. The lease expired in 2081. Given that there were 56 years unexpired we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.
Last April we were e-mailed by Mr J Mercier , who moved into a ground floor apartment in Cyncoed in May 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Cyncoed with 100 year plus lease were in the region of £242,600. The average ground rent payable was £45 billed per annum. The lease finished in 2092. Considering the 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.