The value of Weybridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold premises in Weybridge with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Weybridge,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Weybridge valuers.
In recent months Jude, came precariously near to the 80-year threshold with the lease on his ground floor flat in Weybridge. Having purchased his home 18 years ago, the length of the lease was of minimal concern. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Jude arranged for a lease extension just under the wire in June. Jude and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the figure would have gone up by at least £1,075.
In 2012 we were phoned by Mr and Mrs. I King who, having took over the lease of a garden apartment in Weybridge in October 1999. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Weybridge with an extended lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish on 8 September 2105. Given that there were 80 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
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 related to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.