As the length of the unexpired term of a Verwood residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Verwood will qualify for this right; however a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Using our service gives you increased control over the value of your Verwood leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Gabriel, came very near to the eighty-year threshold with the lease on his garden flat in Verwood. In buying his flat two decades ago, the length of the lease was of minimal importance. Luckily, he became aware that he needed to take action soon on Extending the lease. Gabriel was able to extend his lease just ahead of time last May. Gabriel and the freeholder via the management company in the end agreed on the final figure of £5,500 . If the lease had descended lower than eighty years, the sum would have become more costly by at least £875.
Dr Stanley Ramírez completed a basement apartment in Verwood in January 2006. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical homes in Verwood with 100 year plus lease were worth £198,400. The average amount of ground rent was £65 collected every twelve months. The lease terminated in 2084. Having 59 years left we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.
Last month we were approach by Ms C Michel , who completed a one bedroom flat in Verwood in August 1999. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Verwood with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced per annum. The lease terminated on 17 July 2095. Having 70 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.