The market 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 a lease extension can escalate substantially once the unexpired lease term is less than eighty years
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 additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
|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.|
|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.
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
|Virgin|| 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rhiwbina can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Rhiwbina lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Michael, came very near to the eighty-year threshold with the lease on his ground floor apartment in Rhiwbina. In buying his property two decades ago, the length of the lease was of no interest. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Michael was able to extend his lease just under the wire last March. Michael and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had dipped to less than eighty years, the price would have escalated by at least £950.
In 2009 we were e-mailed by Dr Tyler Lefèvre who, having completed a garden flat in Rhiwbina in January 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable residencies in Rhiwbina with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 billed annually. The lease concluded on 19 September 2100. Considering the 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last Christmas we were approach by Mrs F Wood , who completed a one bedroom flat in Rhiwbina in May 1999. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Rhiwbina with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced per annum. The lease lapsed on 26 June 2089. Considering the 68 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.