The re-sale value of a leasehold property in Newcastle Emlyn is impacted by how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded prior to the 80 year threshold. Statute entitles Newcastle Emlyn qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB |
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 terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kai was the the leasehold owner of a studio apartment in Newcastle Emlyn being marketed with a lease of a few days over 59 years remaining. Kai informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last year we were phoned by Ms H Allen , who owned a studio flat in Newcastle Emlyn in January 2011. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable residencies in Newcastle Emlyn with an extended lease were valued around £183,600. The mid-range ground rent payable was £65 collected yearly. The lease expiry date was on 2 May 2083. Taking into account 57 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.
In 2012 we were phoned by Dr V Bertrand who, having bought a basement flat in Newcastle Emlyn in March 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Newcastle Emlyn with a long lease were valued around £245,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired on 4 May 2094. Taking into account 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.