There is no doubt about it a leasehold flat or house in Weston super Mare is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Weston super Mare will qualify for this right; nevertheless a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Weston super Mare with in excess of 100 years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Two years ago Jude, started to get near to the 80-year mark with the lease on his one bedroom apartment in Weston super Mare. Having purchased his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Jude arranged for a lease extension just under the wire in September. Jude and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had dipped lower than eighty years, the sum would have escalated by a minimum £975.
Dr Katherine White took over the lease of a purpose-built flat in Weston super Mare in March 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable properties in Weston super Mare with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was on 19 March 2104. Considering the 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Last month we were called by Mrs N Sánchez , who moved into a purpose-built apartment in Weston super Mare in October 1998. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Similar homes in Weston super Mare with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 6 May 2084. Taking into account 59 years remaining we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.