Unfortunately that a Rhiwbina residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Rhiwbina property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 50% 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 Most leasehold owners in Rhiwbina will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Rhiwbina with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Leeds Building Society | |
| Santander | |
| TSB |
The conveyancing solicitors that we work with handle Rhiwbina lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Twenty four months ago Jackson, started to get near to the eighty-year threshold with the lease on his basement flat in Rhiwbina. In buying his flat two decades ago, the unexpired term was of little interest. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Jackson arranged for a lease extension at the eleventh hour last March. Jackson and the freeholder via the managing agents ultimately settled on sum of £5,000 . If the lease had descended to less than 80 years, the price would have become more exhorbitant by a minimum £1,150.
Mr and Mrs. O Roberts owned a newly refurbished apartment in Rhiwbina in April 2001. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Rhiwbina with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2079. Given that there were 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. Y Mitchell who, having moved into a studio apartment in Rhiwbina in July 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical flats in Rhiwbina with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected every twelve months. The lease lapsed on 5 March 2099. Considering the 73 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.