Why you should commence your Charmouth lease extension

Main reasons to commence your Charmouth lease extension today:

A Charmouth lease depreciates with the years remaining on the lease.

On the balance of probabilities where you own a flat in Charmouth you actually own a long leasehold interest over your property

Charmouth property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may not finance a property on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Charmouth lease extensions?

Irrespective of whether you are a tenant or a freeholder 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.

Charmouth Lease Extension Example Cases:

Hollie, Charmouth, Dorset,

After lengthy correspondence with the landlord of her leasehold flat in Charmouth, Hollie started the lease extension process as the 80 year mark was swiftly advancing. The legal work was concluded in April 2014. The landlord’s charges were negotiated to below 550 pounds.

Charmouth case:

In 2013 we were e-mailed by Dr John Davis who, having moved into a studio flat in Charmouth in November 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Charmouth with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired on 6 March 2079. Given that there were 53 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.

Charmouth case:

In 2013 we were contacted by Dr Kirsty Reed who, having took over the lease of a one bedroom apartment in Charmouth in January 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Charmouth with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed annually. The lease expired in 2099. Taking into account 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.