Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Charmouth. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Charmouth have the right to extend the lease for an additional ninety years in accordance with statute. Do give due attention before putting off your Charmouth lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Charmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold proprietor of a studio flat in Charmouth on the market with a lease of fraction over fifty eight years left. Finley informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. K Clarke completed a ground floor apartment in Charmouth in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Charmouth with a long lease were worth £181,600. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 16 January 2076. Considering the 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.
In 2013 we were approached by Mr S Martin who, having completed a garden apartment in Charmouth in September 1998. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Charmouth with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2096. Having 72 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including expenses.