It’s a harsh truth that a Milford Haven residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Milford Haven property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Milford Haven 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 be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Milford Haven with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations 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 | |
| Godiva Mortgages | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Milford Haven,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Milford Haven valuers.
Half a year ago Thomas, came very close to the eighty-year mark with the lease on his purpose- built flat in Milford Haven. Having bought his flat 19 years ago, the lease term was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Thomas was able to extend his lease at the eleventh hour last July. Thomas and the freeholder eventually agreed on the final figure of £5,500 . If the lease had dropped below 80 years, the amount would have gone up by at least £1,100.
Dr Charlie Moore owned a ground floor apartment in Milford Haven in September 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Milford Haven with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected annually. The lease end date was on 22 June 2106. Having 80 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
In 2012 we were called by Mr and Mrs. D Hall who, having completed a garden apartment in Milford Haven in June 1999. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Milford Haven with an extended lease were in the region of £275,000. The average ground rent payable was £45 invoiced quarterly. The lease expired in 2095. Having 69 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.