With a residential leasehold property in Cardiff Bay, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Residents in Cardiff Bay with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Cardiff Bay,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cardiff Bay valuers.
Following protracted negotiations with the freeholder of her leasehold apartment in Cardiff Bay, Jade started the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension was concluded in April 2014. The landlord’s fees were kept to an absolute minimum.
Dr L Flores acquired a ground floor apartment in Cardiff Bay in September 2007. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Cardiff Bay with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected per annum. The lease ran out on 13 September 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.
Last Christmas we were contacted by Mr and Mrs. A Vincent , who moved into a studio apartment in Cardiff Bay in June 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Cardiff Bay with an extended lease were worth £208,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed on 17 February 2087. Given that there were 61 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.