Weymouth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Weymouth tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Weymouth you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Weymouth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Weymouth valuers.
John was the the leasehold proprietor of a conversion flat in Weymouth being marketed with a lease of a few days over 59 years unexpired. John on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mrs Sophia André who, having owned a ground floor apartment in Weymouth in August 2001. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable premises in Weymouth with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2083. Given that there were 57 years unexpired we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.
In 2014 we were phoned by Mr and Mrs. N Jackson who, having acquired a first floor apartment in Weymouth in March 1995. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative premises in Weymouth with an extended lease were in the region of £245,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out on 8 March 2094. Taking into account 68 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.