Cardiff Bay leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Cardiff Bay enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cardiff Bay you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Cardiff Bay flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Lease extensions in Cardiff Bay can be a difficult process. We recommend you obtain guidance from a conveyancer 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 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.
In 2014 Kyle, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Cardiff Bay. Having bought his home two decades ago, the length of the lease was of minimal relevance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Kyle was able to extend his lease at the eleventh hour last April. Kyle and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had gone to less than 80 years, the amount would have escalated by a minimum £950.
Last Summer we were contacted by Mr and Mrs. L Pérez , who purchased a one bedroom apartment in Cardiff Bay in July 2010. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Identical homes in Cardiff Bay with an extended lease were valued about £227,800. The mid-range amount of ground rent was £45 billed quarterly. The lease termination date was in 2091. Taking into account 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
In 2009 we were called by Mr and Mrs. N Kelly who, having was assigned a lease of a ground floor flat in Cardiff Bay in September 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar residencies in Cardiff Bay with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out on 27 June 2102. Taking into account 76 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.