Unfortunately that a Radyr residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Radyr property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Most leasehold owners in Radyr will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Radyr leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Harvey, came very close to the 80-year threshold with the lease on his basement apartment in Radyr. Having purchased his home two decades ago, the lease term was of minimal significance. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Harvey was able to extend his lease at the eleventh hour in August. Harvey and the freeholder in the end settled on the final figure of £6,000 . If the lease had slid lower than 80 years, the sum would have become more costly by a minimum £1,150.
Last Christmas we were called by Mr and Mrs. M André , who took over the lease of a one bedroom flat in Radyr in March 1998. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable residencies in Radyr with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish on 13 January 2086. Considering the 60 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.
Mr and Mrs. C Petit completed a garden apartment in Radyr in May 2008. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Radyr with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded on 15 May 2097. Taking into account 71 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.