As the length of the unexpired term of a Milford Haven residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Milford Haven will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Milford Haven can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Milford Haven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Andrew, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Milford Haven. Having bought his property two decades ago, the lease term was of little importance. Fortunately, he noticed he needed to take action soon on Extending the lease. Andrew arranged for a lease extension at the eleventh hour last April. Andrew and the landlord eventually settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £950.
Dr Michael Simon moved into a one bedroom flat in Milford Haven in February 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Milford Haven with a long lease were valued about £216,000. The average amount of ground rent was £60 billed per annum. The lease ran out in 2083. Considering the 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.
In 2010 we were called by Mr and Mrs. P Gray who, having completed a garden flat in Milford Haven in June 1995. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar flats in Milford Haven with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2103. Considering the 78 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.