Unfortunately 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 early years due to the depreciation being disguised by increases in the Milford Haven property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. Most flat owners in Milford Haven will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
The conveyancing solicitors that we work with handle Milford Haven 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 conveyancer we work with provide it.
Two years ago Adam, came seriously close to the 80-year mark with the lease on his two bedroom apartment in Milford Haven. Having purchased his home 19 years previously, the length of the lease was of minimal concern. Luckily, he noticed he needed to take action soon on a lease extension. Adam extended the lease at the eleventh hour last August. Adam and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If the lease had dipped to less than 80 years, the sum would have become more exhorbitant by a minimum £875.
Last October we were phoned by Mr and Mrs. F Carter , who took over the lease of a purpose-built apartment in Milford Haven in September 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar flats in Milford Haven with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended in 2076. Given that there were 51 years remaining we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
Ms Millie Moore was assigned a lease of a garden apartment in Milford Haven in April 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Milford Haven with a long lease were in the region of £285,000. The average ground rent payable was £45 billed quarterly. The lease terminated in 2096. Having 71 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.