When it comes to residential leasehold property in Broad Haven, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years left. Anyone in Broad Haven with a lease nearing 81 years left should seriously consider extending it sooner than later. Once the lease term has fewer than 80 years remaining, under the relevant legislation the landlord can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Broad Haven with in excess of 100 years left 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 property. In such circumstances 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Retaining our service will provide you better control over the value of your Broad Haven leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Edward, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Broad Haven. In buying his property 19 years previously, the unexpired term was of minimal concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Edward was able to extend his lease at the eleventh hour last April. Edward and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If he not met the deadline, the sum would have become more costly by at least £1,125.
Mr and Mrs. M Ward owned a one bedroom flat in Broad Haven in January 2012. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Broad Haven with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease terminated in 2104. Considering the 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last Spring we were contacted by Dr Jake Sánchez , who purchased a garden apartment in Broad Haven in January 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Broad Haven with a long lease were in the region of £193,400. The average amount of ground rent was £65 billed quarterly. The lease concluded in 2084. Having 59 years unexpired we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus legals.