There is no doubt about it a leasehold flat or house in Carlisle is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Carlisle will qualify for this right; however a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Carlisle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her garden flat in Carlisle, Zoe commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction completed in July 2008. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were contacted by Dr B Allen who, having took over the lease of a ground floor apartment in Carlisle in June 2007. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative homes in Carlisle with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 17 June 2104. Taking into account 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Last Spring we were phoned by Mr and Mrs. T André , who acquired a garden apartment in Carlisle in November 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Carlisle with an extended lease were valued around £275,000. The average ground rent payable was £65 collected per annum. The lease concluded on 5 August 2093. Taking into account 68 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.