Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Roath. Inevitably, the term of lease left shortens over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Roath have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give due deliberation before delaying your Roath lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
Leasehold residencies in Roath with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Roath can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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.
Half a year ago Michael, started to get close to the 80-year threshold with the lease on his leasehold apartment in Roath. Having purchased his property twenty years ago, the lease term was of minimal concern. Luckily, he realised he needed to take action soon on a lease extension. Michael was able to extend his lease just under the wire in March. Michael and the landlord in the end agreed on an amount of £5,500 . If the lease had dipped lower than eighty years, the premium would have gone up by at least £900.
Last Christmas we were contacted by Mr and Mrs. N Roux , who acquired a garden apartment in Roath in March 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Roath with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected quarterly. The lease ran out in 2106. Given that there were 80 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2010 we were approached by Mr and Mrs. K Laurent who, having purchased a purpose-built apartment in Roath in May 2009. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar residencies in Roath with a long lease were valued around £275,000. The average amount of ground rent was £45 billed per annum. The lease end date was in 2095. Having 69 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.