Rhiwbina leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Rhiwbina will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Rhiwbina,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 experience and the close ties they enjoy with Rhiwbina valuers.
In the wake of eight months of lengthy discussions with the landlord of her garden apartment in Rhiwbina, Phoebe initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in November 2010. The freeholder’s costs were kept to an absolute minimum.
Dr Amber Petit moved into a newly refurbished apartment in Rhiwbina in May 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative properties in Rhiwbina with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced annually. The lease lapsed on 4 March 2097. Having 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Christmas we were phoned by Mr and Mrs. I Fournier , who purchased a one bedroom apartment in Rhiwbina in November 2007. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Rhiwbina with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected per annum. The lease ran out on 17 January 2086. Given that there were 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.