When it comes to domestic leasehold premises in Christchurch, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Residents in Christchurch with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has below eighty years left, under the current legislation the landlord is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Christchurch can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Christchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Milo, started to get near to the eighty-year mark with the lease on his leasehold apartment in Christchurch. In buying his property 18 years previously, the unexpired term was of no interest. by good luck, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Milo extended the lease just under the wire last September. Milo and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had slipped lower than eighty years, the price would have escalated by a minimum £1,125.
Dr I Phillips owned a one bedroom apartment in Christchurch in October 2010. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable residencies in Christchurch with a long lease were valued around £256,600. The average amount of ground rent was £60 billed every twelve months. The lease elapsed in 2078. Given that there were 52 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £41,800 and £48,400 not including expenses.
In 2010 we were called by Mrs L Gray who, having took over the lease of a ground floor flat in Christchurch in March 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Christchurch with an extended lease were worth £218,000. The average amount of ground rent was £45 billed per annum. The lease expiry date was on 7 September 2089. Taking into account 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including costs.