The market value of a leasehold property in Rhiwbina depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation enables Rhiwbina qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Rhiwbina,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rhiwbina valuers.
In the wake of 6 months of lengthy discussions with the freeholder of her two bedroom apartment in Rhiwbina, Imogen commenced the lease extension process as the eighty year mark was rapidly nearing. The lease extension was finalised in January 2015. The landlord’s fees were kept to an absolute minimum.
Last year we were phoned by Mr K Dupont , who moved into a purpose-built apartment in Rhiwbina in January 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical homes in Rhiwbina with a long lease were valued around £206,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired in 2082. Given that there were 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Mr Jackson Baker moved into a purpose-built apartment in Rhiwbina in May 2003. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Identical homes in Rhiwbina with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 5 July 2102. Taking into account 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.