Why you should commence your Wareham lease extension

Main reasons to commence your Wareham lease extension today:

A Wareham lease depreciates with the years remaining on the lease.

Wareham leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Wareham will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Almost all mortgage lenders will be unwilling to grant a mortgage on a lease with under 70 years remaining - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult in obtaining a mortgage and this will result in your Wareham property becoming difficult to sell or to obtain finance on.

What makes us experts in Wareham lease extensions?

The conveyancers that we work with procure Wareham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Wareham Lease Extension Case Summaries:

Naomi, Wareham, Dorset,

Following lengthy discussions with the landlord of her one bedroom flat in Wareham, Naomi started the lease extension process as the 80 year threshold was quickly coming. The lease extension was concluded in March 2012. The freeholder’s charges were kept to an absolute minimum.

Wareham case:

Last Autumn we were e-mailed by Ms T Garcia , who completed a studio flat in Wareham in June 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Wareham with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 10 June 2100. Given that there were 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.

Wareham case:

In 2012 we were contacted by Dr Alexandra Alexander who, having purchased a one bedroom apartment in Wareham in September 2002. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative homes in Wareham with 100 year plus lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired on 4 November 2089. Taking into account 63 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.