Chances are that if you own a flat in Weston super Mare you actually own a long leasehold interest over your property
Leasehold properties in Weston super Mare with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Weston super Mare,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Weston super Mare valuers.
Kai was the the leasehold owner of a high value apartment in Weston super Mare on the market with a lease of just over 72 years outstanding. Kai on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2013 we were approached by Dr Finley Baker who, having completed a garden flat in Weston super Mare in September 2004. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Weston super Mare with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected per annum. The lease came to a finish on 26 August 2086. Given that there were 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.
Last Winter we were called by Dr Theo Davis , who was assigned a lease of a one bedroom flat in Weston super Mare in October 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Weston super Mare with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired in 2097. Considering the 71 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.