Weston super Mare leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Weston super Mare tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Weston super Mare you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 lawyers that we work with will always be happy 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.
Jackson was the the leasehold proprietor of a studio flat in Weston super Mare on the market with a lease of a few days over 72 years remaining. Jackson on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2011 we were called by Mr and Mrs. T Taylor who, having moved into a one bedroom apartment in Weston super Mare in September 2008. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative homes in Weston super Mare with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired in 2076. Taking into account 50 years as a residual term we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.
In 2012 we were phoned by Ms W Howard who, having purchased a garden flat in Weston super Mare in March 2008. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar residencies in Weston super Mare with 100 year plus lease were worth £203,200. The average amount of ground rent was £65 invoiced per annum. The lease came to a finish on 13 June 2087. Having 61 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.