The market value of a leasehold property in Newcastle Emlyn is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed well before the eighty year cut off point. Current legislation enables Newcastle Emlyn qualifying lessees to an additional term of 90 years over and above the unexpired term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 Newcastle Emlyn can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 procuring Newcastle Emlyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the landlord of her ground floor flat in Newcastle Emlyn, Rebecca commenced the lease extension process as the 80 year threshold was swiftly coming. The transaction was concluded in March 2015. The landlord’s fees were negotiated to under 450 GBP.
Ms F Smith completed a first floor apartment in Newcastle Emlyn in July 2001. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Newcastle Emlyn with a long lease were worth £237,600. The average ground rent payable was £45 billed yearly. The lease came to a finish in 2092. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus fees.
Last month we were called by Mr E Mason , who acquired a purpose-built flat in Newcastle Emlyn in July 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Newcastle Emlyn with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced annually. The lease elapsed on 8 November 2103. Given that there were 78 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.