The re-sale value of a leasehold property in Weymouth is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed prior to the 80 year threshold. Statute enables Weymouth qualifying lessees to an additional term of ninety years on top of the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Weymouth with over 100 years outstanding 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 reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Weymouth can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
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 dealing with 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 Sam, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Weymouth. Having purchased his home 19 years ago, the unexpired term was of little bearing. As luck would have it, he realised he needed to take steps soon on Extending the lease. Sam extended the lease at the eleventh hour last June. Sam and the freeholder eventually settled on sum of £5,500 . If the lease had dipped lower than eighty years, the premium would have become more costly by a minimum £875.
Last Spring we were approach by Ms Isobel Lefèvre , who completed a recently refurbished flat in Weymouth in April 2004. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Weymouth with an extended lease were valued around £235,200. The average ground rent payable was £45 billed per annum. The lease finished in 2092. Taking into account 66 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
Dr K González owned a first floor apartment in Weymouth in September 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Identical premises in Weymouth with 100 year plus lease were worth £275,000. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was on 24 June 2103. Considering the 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.