Charmouth residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Charmouth with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Charmouth 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 was the the leasehold owner of a studio flat in Charmouth on the market with a lease of fraction over 61 years left. Omar on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were approached by Mr U Hernández who, having acquired a basement apartment in Charmouth in August 2002. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Charmouth with a long lease were worth £223,400. The average ground rent payable was £60 invoiced monthly. The lease lapsed on 22 January 2084. Considering the 59 years left we approximated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus professional charges.
Mrs Louise Thompson was assigned a lease of a one bedroom flat in Charmouth in March 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Charmouth with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed annually. The lease terminated in 2104. Given that there were 79 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.