The market value of a leasehold property in Weymouth depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that all matters can be addressed well before the eighty year mark. Statute entitles Weymouth qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|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.|
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The conveyancing solicitors that we work with undertake Weymouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Kian owned a studio apartment in Weymouth on the market with a lease of a little over sixty years left. Kian on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. Y Scott purchased a one bedroom flat in Weymouth in July 2006. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparative homes in Weymouth with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed on 14 October 2094. Taking into account 72 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last Spring we were phoned by Ms Ellen Wilson , who purchased a one bedroom flat in Weymouth in March 1997. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Weymouth with an extended lease were worth £256,600. The average ground rent payable was £60 invoiced annually. The lease ran out in 2074. Having 52 years outstanding we calculated the compensation to the landlord for the lease extension to be within £41,800 and £48,400 plus expenses.