The market value of a leasehold property in Splott is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed well before the eighty year mark. Leasehold Reform legislation enables Splott qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. 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 residencies in Splott with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancing solicitors that we work with handle Splott lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of lengthy correspondence with the freeholder of her one bedroom flat in Splott, Sian commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction completed in March 2006. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Ms Phoebe Jackson , who completed a first floor apartment in Splott in July 2000. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Identical residencies in Splott with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 billed annually. The lease came to a finish on 23 October 2095. Considering the 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2012 we were approached by Mr H Wilson who, having completed a ground floor apartment in Splott in August 1996. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Splott with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 billed per annum. The lease elapsed on 8 September 2084. Having 59 years unexpired we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of expenses.