When it comes to residential leasehold property in New Quay, you effectively rent it for a certain period of time. These days 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 consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Leasehold owners in New Quay with a lease nearing 81 years left should seriously think of extending it sooner rather than later. When the lease term has fewer than eighty years remaining, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in New Quay with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in New Quay,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with New Quay valuers.
George was the the leasehold owner of a conversion apartment in New Quay being marketed with a lease of a few days over fifty eight years left. George on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Summer we were e-mailed by Mr and Mrs. E Howard , who bought a ground floor apartment in New Quay in February 2005. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative properties in New Quay with an extended lease were worth £267,600. The average ground rent payable was £65 billed annually. The lease lapsed on 13 October 2093. Given that there were 67 years outstanding we calculated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus legals.
In 2011 we were called by Mr and Mrs. C Garcia who, having took over the lease of a one bedroom apartment in New Quay in February 2012. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar premises in New Quay with an extended lease were worth £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed on 28 June 2082. Having 56 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.