Charmouth leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Charmouth will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Charmouth 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 conveyancing solicitor we work with provide it.
Milo was the the leasehold owner of a studio flat in Charmouth on the market with a lease of just over sixty years remaining. Milo on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were contacted by Mrs Niamh Gray , who was assigned a lease of a purpose-built apartment in Charmouth in June 2004. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar residencies in Charmouth with a long lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease finished in 2105. Given that there were 79 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2010 we were contacted by Mrs U Hernández who, having moved into a basement flat in Charmouth in March 1996. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Charmouth with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 10 January 2094. Having 68 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.