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 allowing qualifying Radyr residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Radyr you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Radyr flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your Radyr leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum owned a high value flat in Radyr being marketed with a lease of a little over 61 years remaining. Callum on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Spring we were phoned by Mr and Mrs. T Rivera , who took over the lease of a purpose-built apartment in Radyr in August 2001. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable homes in Radyr with an extended lease were valued around £181,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease expiry date was in 2082. Given that there were 56 years remaining we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.
Dr Chloe Bernard bought a purpose-built apartment in Radyr in August 2003. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical residencies in Radyr with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 collected per annum. The lease concluded on 16 May 2093. Taking into account 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.