Carlisle leases on residential properties are gradually losing 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. Legislation has been in place for sometime now allowing qualifying Carlisle residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Carlisle you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Carlisle with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Carlisle,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Carlisle valuers.
Following lengthy discussions with the landlord of her first floor apartment in Carlisle, Ellie initiated the lease extension process as the eighty year mark was rapidly coming. The legal work completed in April 2011. The landlord’s fees were restricted to about 700 pounds.
Dr Gemma Petit was assigned a lease of a one bedroom flat in Carlisle in November 2010. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative premises in Carlisle with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired in 2083. Given that there were 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus legals.
Ms J Rivera moved into a one bedroom apartment in Carlisle in February 2010. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Carlisle with an extended lease were valued about £200,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish in 2103. Having 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.