It’s an underpublicised truth that a Weymouth residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Weymouth property prices.Where your lease has approximately 90 years left, you should start considering 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 slips lower than eighty years - otherwise a higher premium will be payable. Most flat owners in Weymouth will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| Skipton Building Society | |
| Yorkshire Building Society |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Arthur was the the leasehold owner of a studio flat in Weymouth on the market with a lease of fraction over sixty years remaining. Arthur informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2009 we were phoned by Dr E Rodríguez who, having took over the lease of a garden flat in Weymouth in July 2006. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative properties in Weymouth with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease terminated on 17 July 2095. Taking into account 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2009 we were e-mailed by Ms V Bell who, having acquired a basement apartment in Weymouth in June 2011. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Weymouth with a long lease were valued about £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease expired in 2106. Having 80 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.