On the balance of probabilities where you own a flat in Broad Haven you actually own a long leasehold interest over your property
Leasehold premises in Broad Haven with in excess of 100 years unexpired 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Broad Haven can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Broad Haven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Joseph, started to get close to the 80-year mark with the lease on his studio apartment in Broad Haven. In buying his home two decades ago, the unexpired term was of no bearing. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Joseph extended the lease just under the wire in April. Joseph and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had slid lower than eighty years, the sum would have gone up by a minimum £1,025.
Last year we were approach by Mr Y Rivera , who completed a purpose-built apartment in Broad Haven in September 1999. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative homes in Broad Haven with an extended lease were valued about £210,600. The mid-range ground rent payable was £45 billed every twelve months. The lease end date was in 2088. Taking into account 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.
Mrs L Lefèvre owned a recently refurbished apartment in Broad Haven in May 2011. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical flats in Broad Haven with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced annually. The lease finished in 2099. Considering the 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.