New Quay residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold residencies in New Quay with more than 100 years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your New Quay leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Connor, came dangerously close to the 80-year mark with the lease on his basement flat in New Quay. In buying his property two decades ago, the lease term was of no significance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Connor was able to extend his lease at the eleventh hour last June. Connor and the freeholder subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have gone up by at least £1,000.
Mr D Bell completed a purpose-built apartment in New Quay in April 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative premises in New Quay with a long lease were worth £240,600. The mid-range ground rent payable was £60 collected annually. The lease came to a finish in 2088. Given that there were 62 years remaining we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus legals.
Last Christmas we were phoned by Dr Alex Parker , who purchased a studio flat in New Quay in January 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in New Quay with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out in 2077. Taking into account 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.