Christchurch leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Christchurch will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Christchurch with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Christchurch can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Christchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her ground floor apartment in Christchurch, Alisha started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was finalised in January 2012. The landlord’s fees were restricted to approximately 500 pounds.
Last June we were e-mailed by Dr Ethan Reed , who was assigned a lease of a garden flat in Christchurch in March 1997. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Christchurch with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease came to a finish on 13 July 2086. Having 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.
In 2010 we were e-mailed by Mr H Carter who, having completed a basement flat in Christchurch in October 1999. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Christchurch with a long lease were valued around £255,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated on 11 February 2097. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.