When it comes to long leasehold premises in Charmouth, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Residents in Charmouth with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Charmouth with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
In 2014 Kian, came seriously close to the eighty-year threshold with the lease on his garden apartment in Charmouth. Having bought his home 19 years ago, the length of the lease was of minimal interest. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Kian was able to extend his lease just under the wire in August. Kian and the freeholder subsequently settled on an amount of £5,500 . If the lease had dropped to less than 80 years, the amount would have escalated by a minimum £950.
Last June we were approach by Mr and Mrs. K Garcia , who took over the lease of a first floor flat in Charmouth in March 2003. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Charmouth with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed yearly. The lease terminated in 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus professional charges.
In 2013 we were contacted by Mr and Mrs. S Scott who, having completed a basement apartment in Charmouth in April 2006. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Charmouth with 100 year plus lease were worth £196,400. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2080. Taking into account 54 years outstanding we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including costs.