Charmouth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Charmouth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Charmouth you really ought to see if your lease has between 70 and 90 years remaining. There are good reasons why a Charmouth leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Charmouth can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience procuring Charmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo was the the leasehold owner of a 2 bedroom apartment in Charmouth on the market with a lease of fraction over 59 years remaining. Milo on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and secured satisfactory resolution informally and sell the flat.
In 2011 we were called by Mr and Mrs. L Collins who, having bought a garden flat in Charmouth in August 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Similar residencies in Charmouth with a long lease were valued about £200,000. The average ground rent payable was £50 collected per annum. The lease end date was in 2103. Taking into account 77 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Dr L Scott purchased a first floor apartment in Charmouth in June 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Charmouth with 100 year plus lease were valued around £265,200. The average amount of ground rent was £65 billed yearly. The lease finished in 2092. Given that there were 66 years unexpired we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.