When it comes to domestic leasehold property in Roath, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years remaining. Leasehold owners in Roath with a lease approaching 81 years left should seriously think of extending it sooner than later. When the lease term has below 80 years outstanding, under the current statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Roath,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 Roath valuers.
Harvey was the the leasehold proprietor of a studio apartment in Roath being marketed with a lease of fraction over sixty years outstanding. Harvey informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Ms P Brown owned a first floor flat in Roath in November 1996. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical residencies in Roath with a long lease were valued about £275,000. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2093. Given that there were 68 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2012 we were contacted by Dr O Moore who, having took over the lease of a garden flat in Roath in February 2011. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Roath with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 collected annually. The lease finished on 28 June 2082. Given that there were 57 years left we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus professional charges.