As the the remaining lease term of a Weston super Mare residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 100 years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Weston super Mare will meet the qualifying criteria; that being said a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Weston super Mare 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 conveyancing solicitor we work with provide it.
During the course of the last few months Kyle, came dangerously close to the 80-year threshold with the lease on his two bedroom apartment in Weston super Mare. Having bought his flat 18 years previously, the lease term was of little bearing. by good luck, he realised he needed to take action soon on a lease extension. Kyle was able to extend his lease at the eleventh hour last July. Kyle and the freeholder via the management company in the end settled on sum of £6,000 . If the lease had slipped below 80 years, the sum would have become more costly by a minimum £950.
Last year we were called by Mrs P Bennett , who moved into a basement flat in Weston super Mare in October 1995. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparative premises in Weston super Mare with a long lease were valued around £168,800. The average amount of ground rent was £60 collected every twelve months. The lease finished in 2080. Taking into account 55 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Mr and Mrs. O Gunderson took over the lease of a one bedroom apartment in Weston super Mare in September 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative properties in Weston super Mare with a long lease were worth £235,200. The average ground rent payable was £45 billed monthly. The lease concluded in 2091. Taking into account 66 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.