When it comes to domestic leasehold property in Radyr, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Radyr with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Radyr with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Radyr leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her purpose-built flat in Radyr, Katherine initiated the lease extension process as the eighty year deadline was rapidly advancing. The transaction completed in August 2010. The freeholder’s charges were restricted to approximately 700 pounds.
Mr and Mrs. E White owned a basement flat in Radyr in March 2012. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Radyr with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease termination date was in 2103. Given that there were 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Dr Evan Anderson owned a recently refurbished flat in Radyr in January 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Radyr with an extended lease were in the region of £186,000. The mid-range amount of ground rent was £65 collected annually. The lease lapsed on 6 May 2083. Considering the 58 years outstanding we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of legals.