Charmouth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Charmouth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Charmouth you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Charmouth flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Charmouth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a studio flat in Charmouth being sold with a lease of a little over 61 years outstanding. Noah informally spoke with his freeholder a well known local-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 on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
In 2012 we were contacted by Mr and Mrs. F Norbert who, having completed a purpose-built apartment in Charmouth in September 2012. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Charmouth with 100 year plus lease were in the region of £248,000. The mid-range amount of ground rent was £65 billed quarterly. The lease expired on 17 October 2089. Given that there were 63 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus professional charges.
Last Autumn we were contacted by Mr and Mrs. F Brooks , who owned a ground floor flat in Charmouth in January 2010. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative premises in Charmouth with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 collected quarterly. The lease ran out in 2078. Having 52 years unexpired we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.