Tongwynlais leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Tongwynlais tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tongwynlais you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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. |
| 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. |
Using our service will provide you increased control over the value of your Tongwynlais leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold proprietor of a 2 bedroom apartment in Tongwynlais on the market with a lease of a few days over sixty years remaining. Alex informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2013 we were contacted by Dr Leo Sharif who, having was assigned a lease of a purpose-built flat in Tongwynlais in July 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar properties in Tongwynlais with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 25 August 2093. Considering the 68 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last October we were phoned by Dr Joseph François , who took over the lease of a recently refurbished flat in Tongwynlais in November 2011. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Tongwynlais with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2082. Taking into account 57 years outstanding we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.