On the balance of probabilities where you own a flat in Christchurch you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a freeholder in Christchurch,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Christchurch valuers.
In the wake of 9 months of lengthy discussions with the landlord of her two bedroom apartment in Christchurch, Eleanor started the lease extension process as the eighty year threshold was rapidly nearing. The lease extension completed in June 2008. The landlord’s charges were negotiated to about 600 GBP.
Mr K Cox completed a purpose-built apartment in Christchurch in May 2005. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Christchurch with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 2 July 2085. Considering the 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Last Spring we were called by Mr L Jones , who completed a garden apartment in Christchurch in October 2011. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Christchurch with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed yearly. The lease finished on 16 May 2096. Taking into account 70 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.