The nearer a domestic lease in Newcastle Emlyn nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Newcastle Emlyn will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Newcastle Emlyn with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Using our service gives you enhanced control over the value of your Newcastle Emlyn leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Theo, came precariously near to the 80-year mark with the lease on his two bedroom flat in Newcastle Emlyn. Having bought his flat twenty years ago, the lease term was of little relevance. by good luck, he recognised he needed to take steps soon on Extending the lease. Theo extended the lease at the eleventh hour last July. Theo and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he had missed the deadline, the premium would have become more costly by at least £950.
Last Christmas we were contacted by Dr Kyle Wright , who was assigned a lease of a studio flat in Newcastle Emlyn in July 2012. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative homes in Newcastle Emlyn with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was on 15 March 2081. Considering the 55 years as a residual term we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Last year we were e-mailed by Dr S Howard , who purchased a basement apartment in Newcastle Emlyn in August 1996. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Newcastle Emlyn with an extended lease were in the region of £235,200. The average ground rent payable was £45 billed annually. The lease finished in 2092. Given that there were 66 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.