Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Verwood. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Verwood have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Please give due deliberation before putting off your Verwood lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Verwood with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Verwood leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Joshua, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Verwood. In buying his property two decades ago, the length of the lease was of minimal concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Joshua was able to extend his lease at the eleventh hour in July. Joshua and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he not met the deadline, the price would have gone up by at least £875.
Last year we were contacted by Mr Alex Gómez , who purchased a purpose-built flat in Verwood in July 1996. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative premises in Verwood with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 invoiced per annum. The lease finished in 2099. Considering the 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. Y Morgan completed a newly refurbished apartment in Verwood in June 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable flats in Verwood with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed in 2079. Taking into account 54 years left we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.