Weymouth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Weymouth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Weymouth you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Weymouth leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Weymouth with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold 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. |
| Chelsea 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. |
| 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 |
Lease extensions in Weymouth can be a difficult process. We recommend you secure guidance from a lawyer 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 a wealth of experience procuring Weymouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Aiden, started to get close to the 80-year threshold with the lease on his garden apartment in Weymouth. In buying his home 19 years ago, the length of the lease was of little concern. by good luck, he noticed he needed to take steps soon on a lease extension. Aiden was able to extend his lease just ahead of time last January. Aiden and the freeholder eventually agreed on sum of £6,000 . If the lease had fallen to less than 80 years, the sum would have increased by at least £975.
Dr Noah Lewis took over the lease of a basement apartment in Weymouth in July 2009. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Weymouth with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease came to a finish on 10 November 2103. Taking into account 77 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2011 we were e-mailed by Mrs Catherine Smith who, having was assigned a lease of a newly refurbished apartment in Weymouth in July 2004. The question was if we could estimate the premium could be to extend the lease by an additional years. Similar premises in Weymouth with a long lease were worth £183,600. The average amount of ground rent was £65 invoiced monthly. The lease terminated on 5 May 2083. Taking into account 57 years unexpired we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.