With a residential leasehold premises in Roath Park, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned 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 number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Roath Park with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Roath Park with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Roath Park 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a 2 bedroom apartment in Roath Park on the market with a lease of a few days over fifty eight years outstanding. Connor informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last October we were contacted by Mrs G Wilson , who purchased a one bedroom flat in Roath Park in March 2010. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable homes in Roath Park with a long lease were worth £198,400. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 3 February 2084. Considering the 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including costs.
Last Summer we were contacted by Mr and Mrs. V Miller , who was assigned a lease of a first floor flat in Roath Park in July 2012. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar properties in Roath Park with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease terminated on 17 April 2095. Considering the 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.