Cardiff Bay leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Cardiff Bay will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
Lease extensions in Cardiff Bay can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 procuring 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.
In 2014 Omar, came dangerously close to the 80-year mark with the lease on his studio apartment in Cardiff Bay. Having bought his property two decades ago, the lease term was of no significance. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Omar was able to extend his lease at the eleventh hour last August. Omar and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had slid below eighty years, the amount would have increased by a minimum £1,100.
In 2010 we were called by Dr Eleanor Phillips who, having bought a basement apartment in Cardiff Bay in August 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Cardiff Bay with a long lease were valued around £250,000. The average amount of ground rent was £50 billed yearly. The lease ended on 16 July 2095. Taking into account 69 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Mrs Jordan Davis completed a first floor flat in Cardiff Bay in July 2004. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar homes in Cardiff Bay with an extended lease were worth £290,000. The mid-range ground rent payable was £60 billed per annum. The lease concluded in 2106. Given that there were 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.