It’s a harsh certainty that a Weston super Mare residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Weston super Mare property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Weston super Mare will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Weston super Mare,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Weston super Mare valuers.
Two years ago Harry, came dangerously close to the 80-year mark with the lease on his two bedroom flat in Weston super Mare. Having bought his flat 19 years previously, the length of the lease was of minimal significance. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Harry arranged for a lease extension just in the nick of time in July. Harry and the freeholder in the end agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,025.
Last month we were approach by Dr B Michel , who owned a garden flat in Weston super Mare in June 1996. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Weston super Mare with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease end date was in 2095. Taking into account 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Dr B Robinson purchased a garden flat in Weston super Mare in January 2010. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Weston super Mare with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded on 12 November 2106. Given that there were 80 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.