Charmouth leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, 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 take place before the term of the current lease dips below 80 years - otherwise a higher amount will be payable. Flat owners in Charmouth will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Charmouth,the lease extension lawyers 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 Charmouth valuers.
Noah was the the leasehold proprietor of a high value flat in Charmouth being marketed with a lease of a little over fifty eight years left. Noah on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr Michael Allen completed a recently refurbished apartment in Charmouth in October 2006. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Charmouth with a long lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 4 August 2099. Taking into account 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Mr and Mrs. T Peterson took over the lease of a first floor flat in Charmouth in July 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Charmouth with an extended lease were valued about £248,000. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish in 2088. Considering the 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.