On the balance of probabilities if you own a flat in Ware you actually own a long leasehold interest over your property
Leasehold properties in Ware with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 landlord 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.
Last Christmas Luca, started to get close to the eighty-year threshold with the lease on his first floor apartment in Ware. Having purchased his home 19 years ago, the lease term was of little concern. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Luca was able to extend his lease just under the wire last June. Luca and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had gone below 80 years, the premium would have escalated by a minimum £1,100.
Last Spring we were e-mailed by Mr and Mrs. H Johnson , who purchased a first floor flat in Ware in September 2000. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar premises in Ware with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease lapsed on 10 September 2086. Taking into account 60 years left we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.
Mr Mason Wright acquired a recently refurbished flat in Ware in August 1997. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical flats in Ware with an extended lease were valued about £255,000. The average amount of ground rent was £50 collected per annum. The lease elapsed on 17 August 2097. Considering the 71 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.