When it comes to long leasehold property in Weymouth, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Residents in Weymouth with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has below 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Weymouth can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge 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.
Subsequent to lengthy correspondence with the freeholder of her two bedroom apartment in Weymouth, Nicole commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was concluded in August 2013. The landlord’s costs were negotiated to under 550 GBP.
Last year we were called by Mrs Eleanor Clarke , who acquired a first floor flat in Weymouth in April 2003. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Weymouth with a long lease were in the region of £254,200. The average ground rent payable was £60 billed quarterly. The lease finished on 28 June 2077. Taking into account 51 years as a residual term we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including professional charges.
In 2011 we were contacted by Mr K Mason who, having purchased a studio flat in Weymouth in May 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Weymouth with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 invoiced monthly. The lease lapsed in 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of expenses.