Unfortunately that a Haverfordwest residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Haverfordwest property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Haverfordwest will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Haverfordwest can be a difficult process. We recommend you procure professional help from a conveyancer 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 in-depth market knowledge procuring Haverfordwest lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson was the the leasehold proprietor of a 2 bedroom apartment in Haverfordwest on the market with a lease of fraction over sixty years outstanding. Jackson on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2013 we were phoned by Dr B Turner who, having purchased a basement apartment in Haverfordwest in November 2012. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Haverfordwest with a long lease were worth £265,200. The mid-range amount of ground rent was £65 billed yearly. The lease finished on 8 August 2091. Given that there were 66 years remaining we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus professional charges.
Last Autumn we were contacted by Dr Ali Laurent , who completed a first floor flat in Haverfordwest in September 2012. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable residencies in Haverfordwest with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected per annum. The lease ended in 2080. Considering the 55 years left we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.