Christchurch leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Christchurch will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Christchurch can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience dealing with Christchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her leasehold flat in Christchurch, Erin commenced the lease extension process as the 80 year deadline was swiftly approaching. The transaction was finalised in August 2008. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Mr D Mason who, having took over the lease of a one bedroom apartment in Christchurch in October 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Christchurch with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease terminated in 2097. Given that there were 72 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Mr and Mrs. C Turner bought a first floor apartment in Christchurch in January 2000. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable residencies in Christchurch with 100 year plus lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2077. Having 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of fees.