Christchurch leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Christchurch tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Christchurch you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Christchurch leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you increased control over the value of your Christchurch leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her ground floor flat in Christchurch, Ellen started the lease extension process as the eighty year threshold was swiftly advancing. The transaction was finalised in April 2014. The landlord’s costs were kept to an absolute minimum.
Mr Jamie Flores purchased a basement apartment in Christchurch in May 2007. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical residencies in Christchurch with an extended lease were valued about £265,000. The average ground rent payable was £50 collected quarterly. The lease finished on 7 March 2099. Considering the 74 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2014 we were contacted by Mrs D Peterson who, having was assigned a lease of a one bedroom apartment in Christchurch in April 2011. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar homes in Christchurch with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease expired on 5 January 2079. Taking into account 54 years unexpired we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus professional charges.