The market value of Verwood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is below than 80 years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Verwood can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Verwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Owen, came very close to the eighty-year threshold with the lease on his first floor flat in Verwood. Having bought his property 18 years previously, the lease term was of minimal significance. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Owen extended the lease at the eleventh hour last May. Owen and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had gone to less than eighty years, the figure would have gone up by at least £975.
In 2014 we were phoned by Ms Daisy Baker who, having took over the lease of a basement flat in Verwood in September 2010. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Verwood with a long lease were worth £215,600. The average amount of ground rent was £45 collected annually. The lease lapsed on 18 November 2088. Considering the 62 years remaining we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.
In 2014 we were called by Ms A Mercier who, having moved into a recently refurbished apartment in Verwood in May 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar properties in Verwood with a long lease were in the region of £265,000. The average amount of ground rent was £50 collected yearly. The lease expired in 2099. Considering the 73 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.