Verwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Verwood enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Verwood you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Verwood flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Verwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.
Last Autumn Jonathan, came seriously close to the eighty-year threshold with the lease on his ground floor flat in Verwood. In buying his property two decades ago, the length of the lease was of no significance. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. Jonathan was able to extend his lease just in the nick of time in July. Jonathan and the landlord eventually agreed on an amount of £5,500 . If the lease had fallen lower than eighty years, the sum would have increased by a minimum £850.
Mr Felix Campbell was assigned a lease of a one bedroom flat in Verwood in March 2006. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical residencies in Verwood with an extended lease were worth £200,800. The average amount of ground rent was £65 collected monthly. The lease expired on 5 April 2086. Given that there were 60 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.
Dr P Gómez was assigned a lease of a purpose-built flat in Verwood in October 2002. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Verwood with a long lease were worth £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished in 2097. Considering the 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.