With a long leasehold premises in Verwood, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in Verwood with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years left, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Verwood with over one hundred years outstanding on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Verwood can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Verwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian was the the leasehold owner of a conversion flat in Verwood being sold with a lease of a little over 61 years remaining. Sebastian on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr I Simon completed a ground floor apartment in Verwood in November 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar properties in Verwood with 100 year plus lease were valued around £173,800. The average ground rent payable was £65 billed every twelve months. The lease terminated on 10 November 2080. Taking into account 55 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.
Dr Eleanor Laurent took over the lease of a purpose-built apartment in Verwood in July 2011. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar properties in Verwood with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 billed annually. The lease termination date was in 2091. Having 66 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.