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. It is the case that most Roath tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Roath you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Roath with in excess of one hundred years remaining 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 purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Roath,the lease extension lawyers that we work with will always be happy 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 negotiations with the freeholder of her leasehold flat in Roath, Isabelle commenced the lease extension process as the eighty year mark was rapidly nearing. The legal work completed in November 2006. The freeholder’s fees were negotiated to under 650 pounds.
Dr G Evans completed a recently refurbished apartment in Roath in November 1999. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparable homes in Roath with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 4 July 2103. Taking into account 78 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last Christmas we were e-mailed by Mr D Gunderson , who bought a ground floor apartment in Roath in January 1995. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical premises in Roath with 100 year plus lease were valued around £267,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish on 21 July 2092. Considering the 67 years left we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.