Chances are that if you own a flat in Ware you actually own a long leasehold interest over your property
Leasehold properties in Ware with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service gives you enhanced control over the value of your Ware leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a 2 bedroom flat in Ware on the market with a lease of just over sixty years left. Finn informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. E Vincent owned a studio apartment in Ware in October 2003. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar residencies in Ware with a long lease were in the region of £275,000. The average ground rent payable was £55 billed per annum. The lease finished in 2102. Considering the 77 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
In 2012 we were called by Dr Ali Moore who, having was assigned a lease of a basement apartment in Ware in October 2006. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical residencies in Ware with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease terminated in 2082. Given that there were 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.