As the the remaining lease term of a Haverfordwest domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Haverfordwest will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Haverfordwest with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Haverfordwest can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 Haverfordwest lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the landlord of her basement apartment in Haverfordwest, Ellen started the lease extension process as the 80 year threshold was quickly advancing. The transaction completed in May 2008. The freeholder’s fees were negotiated to about four hundred GBP.
Mr and Mrs. B Smith owned a one bedroom flat in Haverfordwest in March 1999. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Haverfordwest with an extended lease were valued about £181,600. The average ground rent payable was £55 billed every twelve months. The lease concluded on 26 November 2078. Given that there were 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.
Mr G Peterson took over the lease of a first floor apartment in Haverfordwest in June 2004. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable properties in Haverfordwest with a long lease were worth £290,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 20 January 2098. Given that there were 72 years left we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.