The nearer a residential lease in Verwood gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Verwood will meet the qualifying criteria; nevertheless a conveyancer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Verwood can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
In 2014 Ethan, started to get near to the eighty-year mark with the lease on his first floor apartment in Verwood. Having purchased his flat 19 years previously, the unexpired term was of little importance. Luckily, he recognised he needed to take action soon on a lease extension. Ethan extended the lease at the eleventh hour last January. Ethan and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had fallen below 80 years, the premium would have increased by at least £950.
Mr and Mrs. F Bernard moved into a purpose-built flat in Verwood in August 1997. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Verwood with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out on 20 May 2094. Having 69 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last year we were approach by Dr Bethany Ward , who was assigned a lease of a purpose-built apartment in Verwood in May 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Verwood with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended on 27 November 2105. Taking into account 80 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.