Broad Haven leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Broad Haven will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Broad Haven with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Broad Haven,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Broad Haven valuers.
Last Summer Blake, started to get close to the eighty-year mark with the lease on his purpose- built flat in Broad Haven. In buying his home two decades ago, the unexpired term was of little importance. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Blake arranged for a lease extension at the eleventh hour last June. Blake and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had slipped to less than 80 years, the figure would have escalated by a minimum £850.
In 2012 we were called by Mrs Natalie Vincent who, having was assigned a lease of a ground floor flat in Broad Haven in February 1995. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparative homes in Broad Haven with a long lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed annually. The lease ran out on 18 September 2080. Given that there were 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.
Dr V Sánchez owned a ground floor apartment in Broad Haven in August 2007. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in Broad Haven with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease expiry date was on 9 November 2091. Having 66 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.