With a domestic leasehold premises in Weymouth, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in Weymouth with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has less than eighty years left, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Weymouth with in excess of one hundred 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Weymouth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Weymouth valuers.
In 2014 Oliver, came critically near to the eighty-year mark with the lease on his basement flat in Weymouth. In buying his flat two decades ago, the unexpired term was of little bearing. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Oliver arranged for a lease extension at the eleventh hour in March. Oliver and the landlord eventually agreed on the final figure of £5,000 . If the lease had fallen lower than eighty years, the amount would have escalated by a minimum £1,025.
In 2010 we were phoned by Mrs N Díaz who, having purchased a newly refurbished flat in Weymouth in June 2004. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable flats in Weymouth with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2096. Having 71 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
In 2012 we were e-mailed by Dr Jude Cook who, having purchased a first floor flat in Weymouth in July 2006. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical residencies in Weymouth with an extended lease were in the region of £254,200. The average amount of ground rent was £60 billed yearly. The lease expired in 2076. Taking into account 51 years remaining we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including professional charges.