With a domestic leasehold premises in Verwood, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Verwood with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service will provide you increased control over the value of your Verwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Dylan, came precariously near to the eighty-year threshold with the lease on his purpose- built flat in Verwood. Having bought his property two decades ago, the unexpired term was of no relevance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Dylan was able to extend his lease just under the wire in January. Dylan and the freeholder in the end agreed on sum of £5,500 . If the lease had slid to less than 80 years, the sum would have become more exhorbitant by a minimum £1,075.
Last November we were phoned by Dr A González , who completed a one bedroom flat in Verwood in April 2008. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative homes in Verwood with a long lease were valued around £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease expired on 22 May 2103. Taking into account 78 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
In 2012 we were called by Dr K Wood who, having owned a ground floor flat in Verwood in August 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable homes in Verwood with 100 year plus lease were worth £191,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished in 2083. Considering the 58 years left we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including professional charges.