There is no doubt about it a leasehold flat or house in Cardiff Bay is a wasting asset as a result of the shortening lease. If the lease has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 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 rational as to why you should consider extending sooner than later. Most flat owners in Cardiff Bay will meet the qualifying criteria; that being said a lawyer can advise whether you qualify to extend your lease. 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 more than 100 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 freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cardiff Bay can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Half a year ago Charlie, started to get close to the 80-year threshold with the lease on his one bedroom flat in Cardiff Bay. In buying his home two decades ago, the length of the lease was of minimal interest. by good luck, it dawned on him that he needed to take action soon on a lease extension. Charlie extended the lease just under the wire in June. Charlie and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had slipped below eighty years, the sum would have escalated by a minimum £900.
In 2014 we were called by Mr Kyle Sharif who, having was assigned a lease of a one bedroom apartment in Cardiff Bay in April 2004. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar residencies in Cardiff Bay with a long lease were worth £191,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended in 2084. Taking into account 58 years unexpired we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus fees.
Last month we were called by Dr Isobel Evans , who completed a first floor flat in Cardiff Bay in June 1995. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Cardiff Bay with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease elapsed in 2095. Considering the 69 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.