The only way is down when it comes to Charmouth lease terms. Charmouth leaseholds that have a residual term shorter than 80 years will reduce in market price even faster, and the cost of extending your lease will increase.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Charmouth can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Charmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her purpose-built flat in Charmouth, Tia started the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in April 2007. The landlord’s costs were restricted to slightly above four hundred pounds.
Mr and Mrs. F Morgan moved into a studio apartment in Charmouth in June 1997. The question was if we could approximate the price would be for a 90 year lease extension. Comparative properties in Charmouth with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease termination date was in 2080. Given that there were 55 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including professional charges.
Last Autumn we were e-mailed by Ms J Edwards , who completed a ground floor apartment in Charmouth in April 2000. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable properties in Charmouth with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed yearly. The lease ended in 2100. Taking into account 75 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.