As the length of the unexpired term of a Roath domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Roath will meet the qualifying criteria; however a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Roath can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 Roath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a conversion apartment in Roath being marketed with a lease of fraction over 59 years unexpired. Felix on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were contacted by Mr and Mrs. C Williams who, having purchased a basement flat in Roath in November 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable residencies in Roath with 100 year plus lease were valued around £275,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 19 April 2095. Given that there were 69 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Last Spring we were called by Mr and Mrs. C François , who was assigned a lease of a newly refurbished flat in Roath in October 1999. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative flats in Roath with a long lease were valued around £216,000. The average ground rent payable was £60 billed per annum. The lease finished in 2084. Given that there were 58 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.