Rhiwbina leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Rhiwbina will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold premises in Rhiwbina with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Rhiwbina leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her garden flat in Rhiwbina, Sian started the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was finalised in September 2009. The landlord’s costs were kept to an absolute minimum.
In 2011 we were approached by Dr Anna López who, having acquired a purpose-built apartment in Rhiwbina in February 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative flats in Rhiwbina with an extended lease were worth £205,000. The average ground rent payable was £50 collected yearly. The lease concluded in 2105. Considering the 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last Spring we were contacted by Mr and Mrs. J Turner , who moved into a ground floor flat in Rhiwbina in September 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Rhiwbina with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £65 collected annually. The lease expired in 2094. Considering the 68 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.