Stop! Your Lease Extension in Radyr Could Be FREE

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Many leaseholders in Radyr 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 Radyr 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.

Main reasons to commence your Radyr lease extension

Main reasons to commence your Radyr lease extension today:

A Radyr leasehold property depreciates with the years remaining on the lease.

Radyr leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Radyr enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Radyr you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Radyr with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions may decide not to issue a mortgage with a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold property. Some will simply refuse lend at all once an unexpired lease term goes beneath a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than seventy years suitable security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Radyr property.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
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.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage.

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

The conveyancers that we work with handle Radyr 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 lawyer we work with provide it.

Radyr Lease Extension Example Cases:

Reuben, Radyr, Cardiff

Last year Reuben, came seriously near to the 80-year threshold with the lease on his basement apartment in Radyr. Having purchased his flat 18 years ago, the lease term was of no concern. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Reuben was able to extend his lease just under the wire in April. Reuben and the freeholder eventually agreed on an amount of £6,000 . If the lease had slid lower than eighty years, the premium would have escalated by a minimum £925.

Radyr case:

Last year we were contacted by Mrs Megan Nguyen , who took over the lease of a newly refurbished apartment in Radyr in July 2003. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical homes in Radyr with a long lease were worth £173,800. The average amount of ground rent was £65 collected per annum. The lease lapsed on 14 June 2081. Having 55 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.

Radyr case:

In 2012 we were phoned by Dr W Pérez who, having owned a one bedroom flat in Radyr in June 1996. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative residencies in Radyr with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease expired on 9 June 2092. Having 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.