With a residential leasehold premises in Weymouth, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years remaining. Anyone in Weymouth with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has fewer than 80 years remaining, under the current Act the landlord can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Weymouth,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 Weymouth valuers.
Trailing unsuccessful correspondence with the landlord of her studio apartment in Weymouth, Natalie started the lease extension process as the 80 year mark was swiftly nearing. The lease extension was concluded in September 2005. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Mr and Mrs. E Mason who, having moved into a basement apartment in Weymouth in April 2006. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar properties in Weymouth with 100 year plus lease were valued around £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease ended on 24 September 2085. Having 60 years outstanding we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
Ms Emma Ali took over the lease of a purpose-built apartment in Weymouth in January 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar homes in Weymouth with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded on 8 July 2096. Having 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.