The only way is down when it comes to Charmouth lease terms. Charmouth properties that have a lease term lower than eighty years will drop in market price even faster, and the cost of extending your lease will go up.
Leasehold properties in Charmouth with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancers that we work with handle 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 Edward, came perilously near to the eighty-year mark with the lease on his studio flat in Charmouth. Having bought his flat twenty years ago, the unexpired term was of minimal bearing. Luckily, it dawned on him that he would soon be paying way over the odds for Extending the lease. Edward extended the lease just under the wire last March. Edward and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £1,125.
Dr K Wilson moved into a studio apartment in Charmouth in July 2010. The question was if we could estimate the price would be to prolong the lease by an additional years. Similar residencies in Charmouth with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed on 8 May 2078. Taking into account 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.
Last Winter we were approach by Ms Molly Díaz , who acquired a purpose-built flat in Charmouth in July 2001. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Charmouth with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2098. Having 72 years outstanding we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.