The market value of a leasehold property in Charmouth is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed ahead of the 80 year mark. Statute enables Charmouth qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Santander |
Regardless of whether you are a tenant or a freeholder in Charmouth,the lease extension solicitors 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.
Caleb owned a 2 bedroom flat in Charmouth being sold with a lease of just over fifty eight years unexpired. Caleb informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were phoned by Ms V Evans who, having was assigned a lease of a garden apartment in Charmouth in February 2000. The question was if we could approximate the price could be for a ninety year lease extension. Similar flats in Charmouth with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out in 2087. Given that there were 61 years left we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including costs.
In 2009 we were called by Dr Jake Morgan who, having moved into a first floor apartment in Charmouth in July 2000. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable residencies in Charmouth with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 collected every twelve months. The lease termination date was in 2076. Given that there were 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.