When it comes to residential leasehold property in New Quay, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in New Quay with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in New Quay with over 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 property. In such situations there is often little to be gained by buying 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in New Quay can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with New Quay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Ethan, started to get close to the 80-year mark with the lease on his first floor flat in New Quay. Having purchased his flat 19 years previously, the length of the lease was of no concern. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Ethan arranged for a lease extension just ahead of time last September. Ethan and the freeholder via the managing agents in the end settled on sum of £6,000 . If the lease had dipped lower than eighty years, the amount would have escalated by a minimum £925.
Mr R Moreau bought a one bedroom apartment in New Quay in May 2005. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in New Quay with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2104. Having 79 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2010 we were approached by Dr Alice Bonnet who, having moved into a basement apartment in New Quay in January 2007. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical premises in New Quay with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 3 November 2093. Having 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.