The nearer a domestic lease in Tongwynlais nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty 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. Many flat owners in Tongwynlais will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly 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 decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 be at least 75 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Tongwynlais,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tongwynlais valuers.
Last October Aarav, came seriously close to the 80-year threshold with the lease on his leasehold apartment in Tongwynlais. In buying his property two decades ago, the unexpired term was of no relevance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Aarav arranged for a lease extension at the eleventh hour in March. Aarav and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had gone below 80 years, the figure would have escalated by a minimum £1,000.
In 2014 we were e-mailed by Mr Joshua Flores who, having acquired a basement flat in Tongwynlais in January 1999. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Tongwynlais with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 billed quarterly. The lease end date was on 14 April 2091. Having 65 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
Mr Eli Rose moved into a purpose-built flat in Tongwynlais in October 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Tongwynlais with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected per annum. The lease concluded on 10 November 2080. Considering the 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including expenses.