Charmouth 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. It is the case that most Charmouth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Charmouth you should check if your lease has between 70 and ninety years left. There are good reasons why a Charmouth flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Charmouth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Charmouth valuers.
Off the back of lengthy discussions with the freeholder of her basement flat in Charmouth, Bethan initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction was concluded in April 2014. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Dr Kyle Sharif , who moved into a basement apartment in Charmouth in June 2002. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in Charmouth with a long lease were worth £171,800. The mid-range ground rent payable was £55 collected monthly. The lease lapsed on 2 February 2076. Taking into account 50 years left we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
Last Summer we were approach by Mrs Sophia Norbert , who acquired a garden flat in Charmouth in October 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable properties in Charmouth with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out on 12 November 2096. Having 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.