The market value of Roath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Roath,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Roath valuers.
Following protracted correspondence with the landlord of her purpose-built apartment in Roath, Ella initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in May 2006. The landlord’s charges were kept to an absolute minimum.
Last March we were e-mailed by Mr and Mrs. B Hall , who was assigned a lease of a newly refurbished flat in Roath in January 1998. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical flats in Roath with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded on 6 July 2085. Taking into account 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including expenses.
Mr and Mrs. B Rivera purchased a purpose-built flat in Roath in April 2000. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Roath with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 billed annually. The lease terminated on 12 August 2105. Considering the 80 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.