The closer a domestic lease in Radyr gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Radyr will qualify for this right; nevertheless a lawyer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Radyr with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Radyr leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Alexander, started to get close to the eighty-year threshold with the lease on his studio flat in Radyr. In buying his flat two decades ago, the length of the lease was of little importance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Alexander was able to extend his lease at the eleventh hour last September. Alexander and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,150.
Last Christmas we were called by Ms S Bonnet , who was assigned a lease of a basement flat in Radyr in May 2012. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical residencies in Radyr with 100 year plus lease were valued about £186,000. The average amount of ground rent was £65 billed quarterly. The lease came to a finish in 2084. Taking into account 58 years outstanding we estimated the premium to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of fees.
Mr and Mrs. N Parker moved into a one bedroom flat in Radyr in March 2009. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical flats in Radyr with a long lease were worth £250,000. The average ground rent payable was £50 collected yearly. The lease elapsed in 2094. Given that there were 68 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 plus costs.