The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Christchurch have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Christchurch lease extension. Postponing the costs today simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold residencies in Christchurch with in excess of 100 years unexpired 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 buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure 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.
Half a year ago Jayden, started to get close to the eighty-year mark with the lease on his basement apartment in Christchurch. Having bought his property 19 years previously, the lease term was of little interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Jayden was able to extend his lease just under the wire last June. Jayden and the freeholder eventually agreed on an amount of £5,500 . If the lease had fallen below 80 years, the price would have escalated by at least £1,000.
In 2012 we were approached by Mr and Mrs. N Moreau who, having completed a one bedroom flat in Christchurch in June 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Christchurch with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expiry date was in 2102. Considering the 77 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2011 we were called by Mr and Mrs. A Anderson who, having bought a one bedroom flat in Christchurch in November 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Christchurch with an extended lease were valued about £183,600. The average ground rent payable was £65 billed monthly. The lease ended in 2082. Considering the 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.