When it comes to long leasehold property in Christchurch, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Christchurch with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years outstanding, under the relevant legislation the landlord can calculate and levy a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Christchurch can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 in-depth market knowledge 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.
Owen owned a conversion flat in Christchurch being marketed with a lease of fraction over 59 years left. Owen informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last month we were contacted by Mrs Samantha Lefèvre , who bought a first floor flat in Christchurch in February 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Christchurch with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 collected annually. The lease concluded in 2084. Taking into account 59 years outstanding we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Last Autumn we were phoned by Mr Tommy Reed , who purchased a one bedroom apartment in Christchurch in January 1996. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Christchurch with a long lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease elapsed on 2 March 2095. Given that there were 70 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.