Splott residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Splott with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Splott can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Splott lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her garden flat in Splott, Danielle initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The lease extension was finalised in March 2005. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. H Simon acquired a one bedroom apartment in Splott in March 2006. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Splott with an extended lease were valued about £216,000. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 7 July 2083. Considering the 58 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.
Last August we were contacted by Dr I Hill , who was assigned a lease of a one bedroom flat in Splott in October 1998. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable residencies in Splott with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded in 2103. Having 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 plus costs.