The market value of Charmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Yorkshire Building Society |
Using our service gives you better control over the value of your Charmouth leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Stanley, started to get close to the 80-year threshold with the lease on his garden flat in Charmouth. Having purchased his flat 18 years previously, the length of the lease was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Stanley extended the lease just ahead of time in January. Stanley and the landlord ultimately settled on an amount of £6,000 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £1,150.
Dr B Hernández moved into a purpose-built apartment in Charmouth in August 1996. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical properties in Charmouth with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed in 2106. Given that there were 80 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Last Summer we were e-mailed by Mr B Miller , who was assigned a lease of a first floor apartment in Charmouth in November 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Charmouth with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced yearly. The lease elapsed in 2095. Having 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.