When it comes to long leasehold premises in Weymouth, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Weymouth with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Weymouth with over 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure Weymouth 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.
In the wake of eight months of protracted discussions with the landlord of her ground floor apartment in Weymouth, Nicole commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension completed in March 2009. The freeholder’s fees were restricted to approximately 700 GBP.
In 2009 we were called by Ms Y King who, having owned a newly refurbished flat in Weymouth in May 2012. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Comparative flats in Weymouth with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish on 20 May 2099. Considering the 73 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Spring we were contacted by Mr and Mrs. L Torres , who took over the lease of a one bedroom apartment in Weymouth in June 1998. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Weymouth with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2079. Taking into account 53 years unexpired we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 plus fees.