Charmouth Lease Extension - Free Consultation

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Top reasons for Charmouth lease extension


Main reasons to start your Charmouth lease extension today:

Increase your lease and increase your Charmouth property value

The market value of Charmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage on a short lease

Mortgage companies are really clamping down as regards to homes in Charmouth with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of potential buyers.

Lender Requirement
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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.
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.
Yorkshire Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.

Why use us for your lease extension in Charmouth?

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 conveyancer we work with provide it.

Charmouth Lease Extension Case Studies:

Oscar, Charmouth, Dorset,

Oscar owned a conversion apartment in Charmouth being marketed with a lease of a few days over 72 years unexpired. Oscar informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.

Charmouth case:

Last Winter we were phoned by Mr and Mrs. T Leroy , who was assigned a lease of a first floor flat in Charmouth in November 2004. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical homes in Charmouth with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 collected per annum. The lease ended on 12 September 2091. Given that there were 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of costs.

Charmouth case:

Dr Aaron Martínez purchased a basement apartment in Charmouth in April 1995. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Charmouth with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 billed every twelve months. The lease terminated on 16 November 2080. Considering the 56 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.