With a long leasehold premises in Radyr, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Radyr with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has below 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Radyr with over 100 years remaining 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Radyr,the lease extension experts 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.
During the course of the last few months Eli, came seriously close to the eighty-year mark with the lease on his two bedroom flat in Radyr. In buying his flat two decades ago, the length of the lease was of no bearing. by good luck, he realised he needed to take steps soon on a lease extension. Eli arranged for a lease extension just in the nick of time in April. Eli and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the amount would have escalated by a minimum £1,050.
In 2011 we were approached by Dr Ryan Jackson who, having acquired a garden flat in Radyr in September 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Radyr with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed on 5 April 2102. Given that there were 76 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.
In 2011 we were phoned by Ms D Khan who, having bought a studio apartment in Radyr in October 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical premises in Radyr with an extended lease were in the region of £181,200. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2082. Given that there were 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of expenses.