Weymouth leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Weymouth will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Weymouth,the lease extension lawyers 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 Weymouth valuers.
Connor was the the leasehold proprietor of a high value apartment in Weymouth on the market with a lease of just over 59 years left. Connor informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Autumn we were contacted by Dr J Scott , who completed a studio apartment in Weymouth in October 2004. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable homes in Weymouth with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £50 collected every twelve months. The lease end date was on 20 April 2094. Having 68 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last January we were approach by Mr and Mrs. I Campbell , who completed a ground floor flat in Weymouth in March 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Weymouth with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease elapsed in 2105. Considering the 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.