Unfortunately that a Verwood residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Verwood property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Verwood will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Verwood with over 100 years remaining 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Verwood leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her ground floor apartment in Verwood, Aimee initiated the lease extension process as the 80 year threshold was swiftly approaching. The legal work was concluded in October 2010. The landlord’s costs were negotiated to less than 600 GBP.
Mrs O Laurent purchased a newly refurbished flat in Verwood in September 1996. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical properties in Verwood with a long lease were valued about £220,400. The mid-range amount of ground rent was £45 billed per annum. The lease ran out on 2 June 2089. Taking into account 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of legals.
Last Winter we were called by Dr Jodie Lefebvre , who purchased a ground floor apartment in Verwood in October 2004. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Verwood with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced per annum. The lease end date was in 2099. Given that there were 74 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.