When it comes to residential leasehold premises in Charmouth, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years left. Leasehold owners in Charmouth with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has under eighty years outstanding, under the current statute the freeholder can calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Charmouth with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Virgin |
The lawyers 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 conveyancer we work with provide it.
Benjamin was the the leasehold owner of a conversion flat in Charmouth on the market with a lease of a few days over 61 years remaining. Benjamin on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert advice and secured an acceptable resolution informally and readily saleable.
Ms Aimee Adams acquired a recently refurbished flat in Charmouth in September 2005. The question was if we could estimate the price would be to prolong the lease by 90 years. Identical residencies in Charmouth with a long lease were in the region of £213,600. The average amount of ground rent was £60 billed yearly. The lease finished in 2083. Given that there were 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.
Dr U Brooks completed a recently refurbished apartment in Charmouth in August 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Charmouth with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 invoiced annually. The lease terminated in 2103. Having 77 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.