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 the lease becomes more expensive. Most owners of residential leasehold property in Weymouth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Weymouth you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Weymouth with in excess of 100 years unexpired 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Yorkshire 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. |
Lease extensions in Weymouth can be a difficult process. We recommend you obtain professional help 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 Weymouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the freeholder of her purpose-built apartment in Weymouth, Jade commenced the lease extension process as the 80 year mark was quickly approaching. The legal work completed in October 2006. The landlord’s costs were negotiated to less than 600 pounds.
Last August we were called by Mr and Mrs. C Lefebvre , who acquired a first floor flat in Weymouth in November 2009. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical flats in Weymouth with an extended lease were worth £260,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 19 September 2096. Considering the 72 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Summer we were called by Dr Phoebe Allen , who acquired a recently refurbished apartment in Weymouth in January 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Weymouth with an extended lease were worth £261,600. The mid-range ground rent payable was £60 billed annually. The lease finished on 7 April 2076. Considering the 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of fees.