Wareham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wareham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wareham you must see if your lease has between seventy and ninety years left. There are good reasons why a Wareham leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wareham valuers.
During the course of the last few months Logan, came precariously close to the eighty-year threshold with the lease on his leasehold flat in Wareham. Having purchased his home twenty years ago, the lease term was of little significance. by good luck, he recognised he needed to take action soon on Extending the lease. Logan arranged for a lease extension at the eleventh hour in August. Logan and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,150.
Dr J Fournier bought a ground floor apartment in Wareham in July 2000. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar flats in Wareham with a long lease were valued about £275,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish on 24 September 2095. Given that there were 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
Ms Rachel Phillips completed a one bedroom flat in Wareham in February 2008. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Wareham with a long lease were in the region of £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease concluded in 2084. Having 58 years as a residual term we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.