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 your lease becomes 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 should see if your lease has between 70 and ninety years left. There are compelling reasons why a Radyr flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Last October William, started to get close to the eighty-year mark with the lease on his basement apartment in Radyr. Having purchased his home two decades ago, the length of the lease was of little interest. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. William arranged for a lease extension at the eleventh hour in January. William and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had dipped below 80 years, the sum would have become more exhorbitant by at least £925.
Last September we were called by Dr Hugo Taylor , who acquired a basement flat in Radyr in July 2005. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical premises in Radyr with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease finished in 2077. Taking into account 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including expenses.
Last Christmas we were contacted by Dr Seth González , who acquired a basement flat in Radyr in March 2009. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable homes in Radyr with a long lease were in the region of £215,600. The mid-range ground rent payable was £45 collected quarterly. The lease concluded in 2088. Taking into account 62 years outstanding we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.