Top reasons for Broad Haven lease extension

Top reasons for lease extension now:

A Broad Haven leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Broad Haven is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed prior to the 80 year mark. Current legislation enables Broad Haven qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Broad Haven with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Many banks and building societies will not grant a mortgage on a lease with less than seventy years left to run - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Broad Haven property becoming difficult to sell or to obtain finance on.

What makes us experts in Broad Haven lease extensions?

Using our service will provide you increased control over the value of your Broad Haven leasehold, as your property will be more valuable and marketable in relation to the 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.

Broad Haven Lease Extension Case Studies:

Alfie, Broad Haven, Pembrokeshire,

Alfie owned a high value flat in Broad Haven being sold with a lease of a little over 72 years outstanding. Alfie on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and secured an acceptable resolution informally and sell the property.

Broad Haven case:

In 2009 we were e-mailed by Mr E Robinson who, having moved into a purpose-built apartment in Broad Haven in February 2012. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar premises in Broad Haven with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 collected monthly. The lease came to a finish on 17 February 2102. Considering the 76 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.

Broad Haven case:

Ms Y Ramírez completed a ground floor apartment in Broad Haven in September 2001. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative flats in Broad Haven with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease elapsed on 26 January 2082. Having 56 years left we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.