Weybridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Weybridge 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 Weybridge you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Weybridge flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Weybridge with over 100 years unexpired 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
Lease extensions in Weybridge can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Weybridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her two bedroom flat in Weybridge, Niamh initiated the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was finalised in August 2007. The freeholder’s fees were restricted to below 600 pounds.
Mr Hugo Davies completed a purpose-built flat in Weybridge in January 2011. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Weybridge with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 collected quarterly. The lease terminated in 2080. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.
An example of a Lease Extension matter before the tribunal for a Weybridge flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.