Stop! Your Lease Extension in Cardiff Bay Could Be FREE

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Many leaseholders in Cardiff Bay are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Cardiff Bay has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Cardiff Bay lease extension

Main reasons to start your Cardiff Bay lease extension today:

A Cardiff Bay leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Cardiff Bay you actually own a long leasehold interest over your property

Cardiff Bay property with a lease extension is almost the same value as a freehold

Leasehold properties in Cardiff Bay with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders will not grant a mortgage with a short lease

Many banks and building societies require a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is reasonable to assume that someone wanting to purchase your property in the future might well do, so if they can't get a mortgage, then the value of the property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
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.
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

Get in touch with one of our Cardiff Bay lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Cardiff Bay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Cardiff Bay Lease Extension Example Cases:

Aaron, Cardiff Bay, Cardiff

In recent months Aaron, started to get near to the 80-year threshold with the lease on his leasehold flat in Cardiff Bay. In buying his flat twenty years previously, the lease term was of no relevance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Aaron extended the lease just ahead of time in March. Aaron and the freeholder in the end settled on sum of £5,500 . If the lease had fallen to less than 80 years, the price would have become more exhorbitant by a minimum £950.

Cardiff Bay case:

Last September we were e-mailed by Ms Lucy Lambert , who took over the lease of a purpose-built apartment in Cardiff Bay in May 1999. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical flats in Cardiff Bay with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed in 2088. Given that there were 62 years unexpired we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of legals.

Cardiff Bay case:

In 2010 we were e-mailed by Mr and Mrs. V Norbert who, having acquired a newly refurbished flat in Cardiff Bay in February 2000. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable premises in Cardiff Bay with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease end date was in 2099. Having 73 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.