Why you should start your Haverfordwest lease extension

Why you should commence your Haverfordwest lease extension today:

Increase your lease and increase your Haverfordwest property value

Haverfordwest residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

Haverfordwest property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not loan monies on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Haverfordwest lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Haverfordwest lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Haverfordwest Lease Extension Example Cases:

Ethan, Haverfordwest, Pembrokeshire

During the course of the last few months Ethan, came precariously near to the eighty-year threshold with the lease on his one bedroom flat in Haverfordwest. In buying his flat two decades ago, the lease term was of little significance. by good luck, he recognised he needed to take steps soon on a lease extension. Ethan extended the lease just under the wire in July. Ethan and the landlord subsequently agreed on a premium of £5,000 . If the lease had dropped to less than eighty years, the price would have gone up by at least £1,150.

Haverfordwest case:

Last Christmas we were contacted by Ms N Norbert , who acquired a basement flat in Haverfordwest in September 2012. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Haverfordwest with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 26 June 2090. Having 64 years remaining we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus expenses.

Haverfordwest case:

Last August we were phoned by Mrs W Scott , who owned a basement apartment in Haverfordwest in March 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Haverfordwest with 100 year plus lease were worth £189,000. The average ground rent payable was £55 collected monthly. The lease terminated in 2079. Having 53 years remaining we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.