For anyone whose Newcastle Emlyn property is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Newcastle Emlyn with more than 100 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a studio flat in Newcastle Emlyn being marketed with a lease of a little over sixty years outstanding. Gabriel on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2014 we were called by Dr K Rose who, having took over the lease of a studio apartment in Newcastle Emlyn in March 2000. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical properties in Newcastle Emlyn with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced yearly. The lease expired in 2088. Given that there were 62 years remaining we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Mr and Mrs. C Jones owned a basement apartment in Newcastle Emlyn in September 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical flats in Newcastle Emlyn with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 billed per annum. The lease ended on 3 June 2099. Considering the 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.