The only way is down when it comes to Roath lease terms. Roath flats that have a lease term lower than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Roath with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Roath leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy discussions with the landlord of her one bedroom flat in Roath, Sophia initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was finalised in January 2012. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Mr and Mrs. B Thompson , who was assigned a lease of a ground floor flat in Roath in July 2007. The question was if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Roath with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 18 July 2101. Having 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. T Stewart bought a basement flat in Roath in November 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Roath with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 billed per annum. The lease concluded on 26 September 2090. Considering the 65 years remaining we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.