Milford Haven residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold properties in Milford Haven with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you better control over the value of your Milford Haven leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ryan, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Milford Haven. In buying his property two decades ago, the lease term was of minimal interest. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Ryan arranged for a lease extension at the eleventh hour in April. Ryan and the landlord subsequently agreed on an amount of £6,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £1,000.
In 2011 we were approached by Dr Teddy Morel who, having was assigned a lease of a ground floor flat in Milford Haven in June 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Milford Haven with a long lease were worth £243,000. The mid-range ground rent payable was £65 collected yearly. The lease elapsed in 2088. Given that there were 63 years remaining we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including expenses.
In 2009 we were phoned by Mr and Mrs. P Davis who, having completed a basement apartment in Milford Haven in May 2007. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative homes in Milford Haven with an extended lease were valued about £181,600. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2077. Taking into account 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.