With a long leasehold property in Cardiff Bay, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Cardiff Bay with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Cardiff Bay with over one hundred years outstanding 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Cardiff Bay can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 Cardiff Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai was the the leasehold proprietor of a high value flat in Cardiff Bay on the market with a lease of a little over 72 years remaining. Kai informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr U Mason was assigned a lease of a newly refurbished flat in Cardiff Bay in September 2010. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Cardiff Bay with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out in 2099. Given that there were 73 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Mr and Mrs. H Lee took over the lease of a basement apartment in Cardiff Bay in September 2010. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable residencies in Cardiff Bay with an extended lease were worth £264,000. The average amount of ground rent was £60 collected quarterly. The lease concluded on 1 October 2079. Having 53 years outstanding we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus legals.