Why you should start your Ware lease extension

Top reasons for lease extension now:

Increase your lease and increase your Ware property value

As the length of the unexpired term of a Ware domestic lease diminished so does its value and therefore the value of your property. If the lease has, over 100 years to run then this decrease may be of little impact however there will become a stage 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 increase sharply the cost. It is the main reason why you should consider extending sooner than later. Many flat owners in Ware will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Ware with over one hundred years left 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not grant a mortgage on a short lease

Most banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Ware property being difficult to sell or to obtain finance on.

Get in touch with one of our Ware lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Ware,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ware valuers.

Ware Lease Extension Example Cases:

Melissa, Ware, Hertfordshire,

After unsuccessful correspondence with the freeholder of her two bedroom apartment in Ware, Melissa started the lease extension process as the 80 year deadline was rapidly approaching. The legal work was finalised in November 2006. The landlord’s costs were kept to an absolute minimum.

Ware case:

In 2014 we were contacted by Mr and Mrs. R Scott who, having completed a one bedroom apartment in Ware in March 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Ware with an extended lease were worth £218,000. The average amount of ground rent was £45 billed monthly. The lease termination date was on 20 July 2089. Given that there were 63 years remaining we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of fees.

Ware case:

In 2009 we were contacted by Ms Rachel Rivera who, having owned a first floor apartment in Ware in August 1995. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in Ware with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded on 14 August 2100. Given that there were 74 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.