When it comes to domestic leasehold property in Ware, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years left. Residents in Ware with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Ware with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Ware,the lease extension solicitors that we work with will always be willing 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.
Aaron was the the leasehold owner of a studio flat in Ware on the market with a lease of fraction over 72 years unexpired. Aaron on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were phoned by Dr Maisie Laurent who, having was assigned a lease of a recently refurbished apartment in Ware in May 1999. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative flats in Ware with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease expired in 2096. Given that there were 70 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
In 2013 we were phoned by Dr S Wilson who, having was assigned a lease of a garden flat in Ware in April 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Ware with an extended lease were worth £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out on 3 November 2076. Having 50 years left we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including legals.