Verwood leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Flat owners in Verwood will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Verwood leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her one bedroom apartment in Verwood, Molly initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in January 2006. The freeholder’s costs were restricted to slightly above six hundred GBP.
Mr J Richardson bought a one bedroom flat in Verwood in July 2008. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in Verwood with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected every twelve months. The lease finished on 22 January 2101. Given that there were 76 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2011 we were called by Mr Lucas Robinson who, having completed a one bedroom flat in Verwood in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Verwood with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £65 billed annually. The lease lapsed on 24 April 2080. Taking into account 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.