The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Radyr can extend the lease for an additional ninety years in accordance with statute. Please give careful consideration before delaying your Radyr lease extension. Postponing the costs today simply increases the amount you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Radyr,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Radyr valuers.
18 months ago Tyler, came perilously close to the 80-year mark with the lease on his ground floor apartment in Radyr. Having purchased his flat two decades ago, the unexpired term was of little concern. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Tyler arranged for a lease extension at the eleventh hour last September. Tyler and the freeholder eventually settled on an amount of £5,000 . If the lease had dropped below 80 years, the figure would have gone up by a minimum £1,125.
In 2012 we were contacted by Dr Harriet Morel who, having acquired a one bedroom apartment in Radyr in October 1999. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar properties in Radyr with a long lease were valued around £261,600. The mid-range ground rent payable was £60 collected annually. The lease finished on 14 May 2078. Taking into account 52 years remaining we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including costs.
In 2011 we were e-mailed by Mr and Mrs. K Laurent who, having completed a first floor flat in Radyr in February 1998. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical homes in Radyr with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 14 May 2089. Considering the 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.