Rumney Lease Extension - Free Consultation

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Why you should commence your Rumney lease extension

Why you should start your Rumney lease extension today:

Increase your lease and increase your Rumney property value

There is no doubt about it a leasehold flat or house in Rumney is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Rumney will qualify for this right; that being said a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

Rumney property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lenders may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This will be problematic as and when you come to dispose of or refinance your flat as it will be practically unmortgageable. You may have no immediate intention to sell but when you do your buyer must hold off for two years before they can exercise the right to a a lease extension.

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.
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.
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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Get in touch with one of our Rumney lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Rumney,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 in-depth market knowledge and the close ties they enjoy with Rumney valuers.

Rumney Lease Extension Example Cases:

Lily, Rumney, Cardiff,

After lengthy discussions with the freeholder of her two bedroom apartment in Rumney, Lily commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was concluded in May 2015. The landlord’s fees were kept to an absolute minimum.

Rumney case:

Ms Poppy Martinez owned a basement apartment in Rumney in March 2009. The question was if we could approximate the premium could be for a ninety year lease extension. Similar homes in Rumney with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 20 March 2094. Taking into account 70 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.

Rumney case:

In 2013 we were approached by Mr and Mrs. J Martinez who, having purchased a recently refurbished flat in Rumney in March 2006. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Rumney with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expiry date was on 12 February 2083. Taking into account 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.