It’s an underpublicised certainty that a Broad Haven residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Broad Haven property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Broad Haven will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Broad Haven with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Lease extensions in Broad Haven can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring 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 October Muhammad, started to get close to the eighty-year mark with the lease on his basement apartment in Broad Haven. Having purchased his property twenty years ago, the length of the lease was of no importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Muhammad arranged for a lease extension just under the wire last April. Muhammad and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had dipped to less than 80 years, the figure would have become more exhorbitant by a minimum £950.
In 2012 we were approached by Mr and Mrs. V Lefèvre who, having purchased a one bedroom flat in Broad Haven in July 1996. 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. Comparative flats in Broad Haven with 100 year plus lease were valued about £183,600. The average amount of ground rent was £65 invoiced per annum. The lease expired in 2083. Having 57 years outstanding we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
In 2012 we were phoned by Dr Ella Miller who, having was assigned a lease of a one bedroom apartment in Broad Haven in May 1999. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical premises in Broad Haven with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2094. Taking into account 68 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.