The closer a residential lease in Milford Haven nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Milford Haven will qualify for this right; however a lawyer should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Milford Haven,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Milford Haven valuers.
Teddy owned a high value flat in Milford Haven being sold with a lease of just over fifty eight years remaining. Teddy informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were approached by Mr and Mrs. T Nelson who, having took over the lease of a ground floor flat in Milford Haven in June 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Milford Haven with an extended lease were worth £275,000. The average amount of ground rent was £65 invoiced per annum. The lease expired on 20 August 2094. Having 68 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2012 we were approached by Mr T Mason who, having owned a studio apartment in Milford Haven in January 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar flats in Milford Haven with an extended lease were in the region of £208,600. The average ground rent payable was £60 billed per annum. The lease came to a finish in 2083. Given that there were 57 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.