Main reasons to commence your Verwood lease extension

Why you should commence your Verwood lease extension today:

A Verwood leasehold property depreciates with the years remaining on the lease.

Verwood leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Verwood will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.

Verwood property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Verwood with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not issue a mortgage on a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years unexpired - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Verwood property being difficult to sell or refinance.

Why use us for your lease extension in Verwood?

The lawyers that we work with handle Verwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Verwood Lease Extension Case Studies:

Leah, Verwood, Dorset,

Trailing unsuccessful negotiations with the freeholder of her one bedroom flat in Verwood, Leah initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction completed in February 2010. The freeholder’s charges were kept to an absolute minimum.

Verwood case:

Mrs Francesca Turner owned a garden flat in Verwood in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Verwood with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 collected yearly. The lease ended in 2083. Taking into account 57 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.

Verwood case:

In 2013 we were called by Ms O Taylor who, having was assigned a lease of a studio flat in Verwood in May 2004. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable flats in Verwood with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease expired on 1 November 2094. Given that there were 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.