As the length of the unexpired term of a Roath domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Roath will qualify for this right; that being said a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
---|---|
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. |
Coventry Building Society | 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. |
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. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you increased control over the value of your Roath leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jack, started to get close to the 80-year mark with the lease on his leasehold apartment in Roath. In buying his property two decades ago, the lease term was of no concern. Thankfully, he realised he needed to take action soon on a lease extension. Jack extended the lease just ahead of time in January. Jack and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had dipped below eighty years, the price would have become more exhorbitant by a minimum £1,000.
Dr Y Reed moved into a one bedroom apartment in Roath in May 2006. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative flats in Roath with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish in 2104. Given that there were 79 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Mr and Mrs. L Cox moved into a studio flat in Roath in March 2002. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable properties in Roath with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 billed yearly. The lease expired in 2093. Considering the 68 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.