Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ware. Clearly, the length of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Ware have the legal entitlement to extend the lease for an additional 90 years under legislation. Please give careful attention before delaying your Ware lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Ware 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.
Harrison owned a 2 bedroom apartment in Ware being sold with a lease of a little over fifty eight years unexpired. Harrison on an informal basis contacted his freeholder being a well known local-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 an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last March we were e-mailed by Mrs Jasmine Martin , who was assigned a lease of a recently refurbished apartment in Ware in June 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Ware with a long lease were in the region of £191,000. The average ground rent payable was £65 billed every twelve months. The lease expiry date was on 15 July 2083. Considering the 58 years outstanding we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including fees.
In 2012 we were contacted by Ms J David who, having bought a ground floor flat in Ware in January 2004. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable properties in Ware with a long lease were valued about £250,000. The average amount of ground rent was £50 billed monthly. The lease expired in 2094. Having 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.