The only way is down when it comes to Christchurch lease terms. Christchurch flats that have a lease term shorter than eighty years will drop in market price even faster, and the cost to extend your lease will increase.
Leasehold premises in Christchurch with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Christchurch can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Christchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her basement flat in Christchurch, Elizabeth initiated the lease extension process as the eighty year threshold was swiftly approaching. The legal work was concluded in September 2014. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. C Morris bought a one bedroom flat in Christchurch in July 1996. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable flats in Christchurch with a long lease were in the region of £186,000. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded in 2083. Taking into account 58 years remaining we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of legals.
In 2012 we were called by Mr and Mrs. H Baker who, having purchased a studio flat in Christchurch in January 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Christchurch with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out in 2094. Considering the 69 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.