As the length of the unexpired term of a Cardiff Bay domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Cardiff Bay will meet the qualifying criteria; however a conveyancer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Cardiff Bay with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you increased control over the value of your Cardiff Bay leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy correspondence with the freeholder of her basement apartment in Cardiff Bay, Victoria started the lease extension process as the eighty year mark was quickly nearing. The legal work was concluded in March 2015. The landlord’s costs were kept to an absolute minimum.
In 2014 we were approached by Mrs A Roberts who, having acquired a newly refurbished flat in Cardiff Bay in July 1995. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative flats in Cardiff Bay with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2102. Having 76 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Last year we were called by Mr and Mrs. C Bell , who took over the lease of a studio flat in Cardiff Bay in September 2008. We are asked if we could estimate the price would be for a 90 year lease extension. Similar properties in Cardiff Bay with a long lease were in the region of £176,200. The average ground rent payable was £65 billed monthly. The lease terminated in 2082. Considering the 56 years left we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of fees.