It’s an underpublicised truth that a Verwood residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Verwood property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Verwood will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Verwood with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 landlord in Verwood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Verwood valuers.
Trailing unsuccessful discussions with the freeholder of her one bedroom apartment in Verwood, Anna started the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was finalised in September 2005. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were called by Dr Daniel Edwards , who completed a purpose-built apartment in Verwood in August 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Verwood with a long lease were valued around £254,200. The average ground rent payable was £60 billed quarterly. The lease lapsed in 2076. Having 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including costs.
Last year we were phoned by Mr R Ramírez , who moved into a ground floor flat in Verwood in May 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Verwood with an extended lease were worth £215,600. The mid-range ground rent payable was £45 collected annually. The lease termination date was in 2087. Considering the 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.