Chances are that if you own a flat in Wareham you actually own a long leasehold interest over your property
Leasehold properties in Wareham with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Wareham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wareham valuers.
Subsequent to unsuccessful negotiations with the landlord of her first floor flat in Wareham, Mollie initiated the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in March 2012. The landlord’s charges were kept to an absolute minimum.
In 2011 we were phoned by Mr F David who, having bought a first floor apartment in Wareham in March 2000. The question was if we could estimate the price could be for a ninety year lease extension. Identical flats in Wareham with 100 year plus lease were worth £189,000. The average ground rent payable was £55 collected every twelve months. The lease lapsed in 2078. Given that there were 53 years outstanding we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.
In 2009 we were phoned by Ms E Lambert who, having moved into a ground floor flat in Wareham in July 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Wareham with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected yearly. The lease terminated in 2098. Considering the 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.