The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Wareham may extend the lease for an additional ninety years in accordance with statute. Please give careful consideration before delaying your Wareham lease extension. Shelving the costs now simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold premises in Wareham with more than one hundred years remaining 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Wareham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Samuel, came very near to the eighty-year mark with the lease on his two bedroom apartment in Wareham. In buying his property 18 years previously, the unexpired term was of little significance. Luckily, he became aware that he needed to take steps soon on a lease extension. Samuel arranged for a lease extension just ahead of time last March. Samuel and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the sum would have gone up by at least £925.
Mrs Rebecca Bertrand acquired a basement apartment in Wareham in September 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Wareham with 100 year plus lease were valued about £240,600. The average ground rent payable was £60 collected monthly. The lease elapsed on 6 January 2088. Taking into account 62 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Last year we were called by Mr and Mrs. M Sharif , who bought a ground floor flat in Wareham in April 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Wareham with a long lease were valued about £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease ended on 23 July 2077. Considering the 51 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.