The re-sale value of a leasehold property in Radyr is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be concluded well before the eighty year mark. Leasehold Reform legislation entitles Radyr qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Radyr,the lease extension lawyers that we work with will always be willing 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.
David owned a conversion flat in Radyr being marketed with a lease of a few days over fifty eight years unexpired. David informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. J François purchased a studio apartment in Radyr in February 2001. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Radyr with a long lease were in the region of £198,400. The average amount of ground rent was £65 billed annually. The lease ran out in 2085. Having 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.
In 2009 we were called by Mrs Caitlin Pérez who, having completed a one bedroom flat in Radyr in September 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Radyr with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed annually. The lease came to a finish on 25 February 2096. Having 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.