Roath leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Roath residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Roath you must see if your lease has between 70 and 90 years left. There are compelling reasons why a Roath flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Roath leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joseph was the the leasehold proprietor of a studio apartment in Roath being marketed with a lease of a little over fifty eight years left. Joseph informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were phoned by Mr and Mrs. Y Laurent who, having was assigned a lease of a ground floor apartment in Roath in April 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Roath with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 collected annually. The lease expired on 1 February 2091. Given that there were 65 years outstanding we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
Last year we were contacted by Mr and Mrs. T Bailey , who bought a basement apartment in Roath in May 2012. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative properties in Roath with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2080. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including costs.