The market value of a leasehold property in Haverfordwest depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation entitles Haverfordwest qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Haverfordwest with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Haverfordwest,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Haverfordwest valuers.
Tommy owned a conversion apartment in Haverfordwest being marketed with a lease of a little over sixty years remaining. Tommy informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Ms S Williams completed a basement flat in Haverfordwest in February 2008. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar homes in Haverfordwest with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired in 2097. Taking into account 71 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
In 2013 we were called by Mrs Samantha López who, having purchased a studio flat in Haverfordwest in June 2006. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar homes in Haverfordwest with 100 year plus lease were valued about £225,800. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated on 28 November 2086. Given that there were 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of fees.