The value of Rhiwbina leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than eighty years
Leasehold properties in Rhiwbina with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Rhiwbina leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her leasehold apartment in Rhiwbina, Rachael initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was concluded in May 2010. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were approached by Dr V Moore who, having purchased a purpose-built apartment in Rhiwbina in October 1999. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Rhiwbina with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected per annum. The lease lapsed on 8 November 2081. Considering the 55 years remaining we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of legals.
Last Winter we were called by Mr T Morris , who moved into a ground floor apartment in Rhiwbina in April 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Rhiwbina with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded in 2101. Taking into account 75 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.