The closer a domestic lease in Weymouth gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Most flat owners in Weymouth will meet the qualifying criteria; however a conveyancer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Weymouth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her one bedroom flat in Weymouth, Laura initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The transaction was finalised in April 2011. The freeholder’s charges were negotiated to approximately 450 pounds.
Last Christmas we were phoned by Mr and Mrs. A Parker , who acquired a ground floor flat in Weymouth in November 2000. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparative residencies in Weymouth with a long lease were worth £270,000. The average ground rent payable was £55 invoiced per annum. The lease termination date was in 2100. Considering the 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2014 we were e-mailed by Mrs R Fournier who, having owned a purpose-built apartment in Weymouth in March 2011. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative premises in Weymouth with an extended lease were valued around £173,800. The mid-range ground rent payable was £60 invoiced yearly. The lease finished in 2080. Given that there were 55 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.