The re-sale value of a leasehold property in Rudry depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed ahead of the 80 year cut off point. Statute enables Rudry qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Rudry with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in Rudry,the lease extension experts 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 Rudry valuers.
Evan was the the leasehold proprietor of a 2 bedroom apartment in Rudry on the market with a lease of fraction over 72 years remaining. Evan on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2012 we were phoned by Ms Emma Thompson who, having moved into a one bedroom flat in Rudry in September 2003. The question was if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Rudry with an extended lease were worth £250,400. The average amount of ground rent was £65 invoiced annually. The lease concluded on 24 November 2089. Given that there were 64 years unexpired we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including costs.
In 2012 we were called by Mrs Victoria Rogers who, having bought a basement apartment in Rudry in April 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable properties in Rudry with a long lease were worth £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2078. Given that there were 53 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.