Christchurch leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Christchurch will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Christchurch with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| TSB |
The lawyers that we work with undertake Christchurch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Omar owned a conversion flat in Christchurch being marketed with a lease of a little over fifty eight years remaining. Omar informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and secured satisfactory deal informally and sell the property.
Last November we were approach by Mr and Mrs. L Bertrand , who moved into a recently refurbished apartment in Christchurch in February 2003. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar properties in Christchurch with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2082. Taking into account 56 years unexpired we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus costs.
In 2010 we were called by Mr Thomas Adams who, having bought a purpose-built flat in Christchurch in March 2012. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative premises in Christchurch with a long lease were valued about £237,600. The average amount of ground rent was £45 collected yearly. The lease ran out on 10 May 2093. Given that there were 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus legals.