Rhiwbina leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Rhiwbina enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rhiwbina you would be well advised to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Rhiwbina valuers.
Off the back of lengthy discussions with the landlord of her purpose-built apartment in Rhiwbina, Katie started the lease extension process as the eighty year deadline was fast coming. The lease extension was finalised in October 2012. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. G Cox took over the lease of a one bedroom apartment in Rhiwbina in March 2011. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Rhiwbina with a long lease were worth £171,800. The average ground rent payable was £55 billed monthly. The lease concluded in 2075. Considering the 50 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.
Last Summer we were e-mailed by Dr Alex Peterson , who bought a ground floor apartment in Rhiwbina in February 2003. The question was if we could estimate the price could be to extend the lease by 90 years. Identical homes in Rhiwbina with an extended lease were in the region of £280,000. The average ground rent payable was £45 collected quarterly. The lease elapsed in 2095. Considering the 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.