Radyr leases on residential properties are gradually decreasing 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. Legislation has been in place for sometime now which entitles qualifying Radyr residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Radyr you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Radyr with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Radyr,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Radyr valuers.
Ben was the the leasehold owner of a 2 bedroom flat in Radyr being sold with a lease of fraction over sixty years left. Ben informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2011 we were approached by Mr and Mrs. T Hill who, having acquired a first floor apartment in Radyr in February 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Radyr with a long lease were valued around £168,800. The average amount of ground rent was £60 invoiced monthly. The lease ran out on 28 May 2080. Taking into account 55 years remaining we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.
In 2013 we were phoned by Ms Naomi Miller who, having moved into a purpose-built flat in Radyr in February 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical residencies in Radyr with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed on 4 January 2091. Given that there were 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.