The value of Carlisle 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 increase materialy once the remaining term is less than 80 years
Leasehold residencies in Carlisle with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Carlisle leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Logan was the the leasehold owner of a studio flat in Carlisle on the market with a lease of just over 61 years unexpired. Logan informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Winter we were e-mailed by Mr and Mrs. U Díaz , who moved into a garden apartment in Carlisle in January 1996. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable premises in Carlisle with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish on 14 July 2081. Given that there were 55 years left we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including legals.
Last Spring we were e-mailed by Ms D Lee , who bought a ground floor flat in Carlisle in March 2000. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Identical residencies in Carlisle with a long lease were valued about £295,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated in 2101. Given that there were 75 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.