It’s an underpublicised certainty that a Radyr residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Radyr property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Most flat owners in Radyr will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Radyr with over one hundred 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 will provide you better control over the value of your Radyr leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ali owned a studio apartment in Radyr on the market with a lease of a little over sixty years outstanding. Ali informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2011 we were contacted by Ms Jessica Rose who, having owned a one bedroom flat in Radyr in October 2009. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Radyr with an extended lease were valued about £250,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2094. Considering the 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
In 2012 we were phoned by Mr Elijah Díaz who, having acquired a one bedroom apartment in Radyr in January 2001. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Radyr with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease concluded on 15 November 2105. Taking into account 79 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.