It’s an underpublicised certainty that a Tongwynlais residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Tongwynlais property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Tongwynlais will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Tongwynlais with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure Tongwynlais 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 conveyancing solicitor we work with provide it.
Henry was the the leasehold owner of a high value flat in Tongwynlais on the market with a lease of a little over 59 years remaining. Henry informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2013 we were contacted by Dr Erin Green who, having completed a garden flat in Tongwynlais in July 2004. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Tongwynlais with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 collected every twelve months. The lease elapsed on 28 September 2077. Having 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Mr and Mrs. V Cooper owned a first floor apartment in Tongwynlais in February 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Tongwynlais with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 billed quarterly. The lease termination date was in 2097. Taking into account 71 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.