The only way is down when it comes to Christchurch lease terms. Christchurch properties that have a lease term less than than eighty years will drop in market price even faster, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Christchurch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Christchurch valuers.
Off the back of lengthy correspondence with the freeholder of her basement flat in Christchurch, Rebecca initiated the lease extension process as the 80 year threshold was quickly nearing. The legal work completed in July 2011. The landlord’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. C Martin who, having moved into a recently refurbished apartment in Christchurch in October 2003. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Christchurch with an extended lease were valued around £218,000. The average amount of ground rent was £45 collected monthly. The lease expiry date was on 3 March 2089. Taking into account 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 plus fees.
Mr and Mrs. C Nelson moved into a basement apartment in Christchurch in January 1998. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical properties in Christchurch with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out in 2100. Taking into account 74 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.