As the the remaining lease term of a Christchurch residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Christchurch will qualify for this right; that being said a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Christchurch with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
Using our service will provide you better control over the value of your Christchurch leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Caleb owned a conversion apartment in Christchurch being sold with a lease of a little over 72 years remaining. Caleb on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and secured an acceptable resolution informally and readily saleable.
In 2010 we were contacted by Dr Yasmin Bernard who, having purchased a recently refurbished apartment in Christchurch in November 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar residencies in Christchurch with an extended lease were in the region of £280,000. The average ground rent payable was £55 collected every twelve months. The lease concluded on 3 August 2105. Taking into account 79 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
Last Summer we were contacted by Mr and Mrs. G Cook , who took over the lease of a one bedroom apartment in Christchurch in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Christchurch with a long lease were worth £193,400. The average amount of ground rent was £65 collected every twelve months. The lease lapsed on 3 October 2085. Considering the 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.