Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Cardiff Bay. Inevitably, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Cardiff Bay have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Cardiff Bay lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Cardiff Bay with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Cardiff Bay,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cardiff Bay valuers.
George was the the leasehold proprietor of a conversion flat in Cardiff Bay being marketed with a lease of fraction over fifty eight years outstanding. George informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were George to exercise his statutory right. George procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2009 we were phoned by Mr and Mrs. L Harris who, having purchased a first floor apartment in Cardiff Bay in May 2007. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative properties in Cardiff Bay with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2092. Taking into account 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.
Last Winter we were contacted by Mr and Mrs. Y Peterson , who owned a one bedroom apartment in Cardiff Bay in August 2012. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar properties in Cardiff Bay with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2103. Having 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.