Unfortunately that a Weymouth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Weymouth property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Weymouth will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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 guidance from a lawyer and surveyor with experience in this area.
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.
Last October Hugo, came seriously close to the eighty-year threshold with the lease on his basement flat in Weymouth. In buying his home two decades ago, the length of the lease was of little significance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Hugo was able to extend his lease just ahead of time last April. Hugo and the landlord subsequently agreed on the final figure of £5,000 . If the lease had dropped below 80 years, the figure would have gone up by at least £850.
Dr N Patel completed a first floor flat in Weymouth in October 1995. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Identical homes in Weymouth with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was on 18 March 2106. Taking into account 80 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
Last Autumn we were e-mailed by Mrs W Lambert , who was assigned a lease of a first floor flat in Weymouth in May 2002. The question was if we could estimate the price would be to extend the lease by an additional years. Comparable homes in Weymouth with an extended lease were worth £200,800. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2086. Taking into account 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including legals.