It’s an underpublicised truth that a Taffs Well residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Taffs Well property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Taffs Well will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Taffs Well leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Noah, came perilously close to the 80-year threshold with the lease on his two bedroom flat in Taffs Well. In buying his flat 18 years ago, the length of the lease was of no interest. Thankfully, he became aware that he needed to take steps soon on a lease extension. Noah was able to extend his lease at the eleventh hour in July. Noah and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had descended to less than eighty years, the premium would have escalated by a minimum £1,100.
Ms K Brooks purchased a recently refurbished flat in Taffs Well in July 2008. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Taffs Well with a long lease were valued around £245,000. The average ground rent payable was £50 billed annually. The lease end date was in 2094. Taking into account 68 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Winter we were called by Mr Jayden Ramírez , who purchased a ground floor apartment in Taffs Well in September 1995. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Taffs Well with a long lease were valued around £285,000. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was on 9 March 2105. Given that there were 79 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.