Main reasons to commence your Verwood lease extension

Top reasons for lease extension now:

A Verwood leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Verwood depends on how many years the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised in advance of the eighty year mark. Leasehold Reform legislation enables Verwood qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Verwood property with a lease extension is almost the same value as a freehold

Leasehold properties in Verwood with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may not loan monies with a short lease

Banks and building societies are really restricting their approach as regards to homes in Verwood with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus narrowing your market.

Why use us for your lease extension in Verwood?

The conveyancers that we work with undertake Verwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Verwood Lease Extension Case Studies:

Jennifer, Verwood, Dorset,

In the wake of 6 months of protracted discussions with the freeholder of her basement flat in Verwood, Jennifer initiated the lease extension process as the 80 year deadline was fast approaching. The lease extension was concluded in July 2013. The landlord’s fees were restricted to less than 600 pounds.

Verwood case:

In 2013 we were called by Mrs Catherine Ramírez who, having owned a studio flat in Verwood in August 2008. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar premises in Verwood with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 billed quarterly. The lease finished on 26 March 2087. Given that there were 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of fees.

Verwood case:

In 2013 we were approached by Mr and Mrs. D Girard who, having completed a ground floor flat in Verwood in October 2009. We are asked if we could estimate the price would be for a 90 year lease extension. Similar flats in Verwood with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2098. Having 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.