For those whose Verwood home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Verwood with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Verwood,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Verwood valuers.
Arthur owned a conversion apartment in Verwood being sold with a lease of a little over 59 years unexpired. Arthur informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last year we were approach by Ms Robyn Howard , who owned a ground floor apartment in Verwood in March 2001. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical properties in Verwood with a long lease were in the region of £246,800. The average ground rent payable was £60 invoiced per annum. The lease terminated on 25 June 2075. Considering the 50 years unexpired we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of expenses.
Last month we were contacted by Mrs Yasmin Simon , who bought a one bedroom apartment in Verwood in February 1996. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Verwood with an extended lease were in the region of £203,200. The average ground rent payable was £65 billed quarterly. The lease elapsed on 23 July 2086. Given that there were 61 years left we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.