Roath Park leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Roath Park enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Roath Park you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Roath Park leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Roath Park with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Roath Park 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.
Last year Joseph, started to get close to the eighty-year threshold with the lease on his basement flat in Roath Park. In buying his property two decades ago, the length of the lease was of little relevance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Joseph extended the lease just in the nick of time in July. Joseph and the landlord subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,100.
Last November we were e-mailed by Mrs U Walker , who acquired a newly refurbished apartment in Roath Park in May 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Roath Park with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease ended on 21 August 2104. Taking into account 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Last year we were called by Dr S Bailey , who was assigned a lease of a garden flat in Roath Park in November 2002. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable premises in Roath Park with a long lease were worth £198,400. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2084. Considering the 59 years unexpired we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.