It’s an underpublicised truth that a Carlisle residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Carlisle property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Carlisle will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Carlisle with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Carlisle,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Carlisle valuers.
Last Summer Freddie, came precariously near to the eighty-year threshold with the lease on his leasehold apartment in Carlisle. Having bought his property 19 years previously, the unexpired term was of little significance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Freddie extended the lease just in the nick of time last July. Freddie and the freeholder via the management company in the end agreed on a premium of £5,500 . If the lease had slid to less than 80 years, the premium would have become more costly by a minimum £1,025.
Mrs G Michel acquired a ground floor flat in Carlisle in August 1998. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable homes in Carlisle with an extended lease were valued around £166,800. The average ground rent payable was £50 billed every twelve months. The lease expiry date was on 7 July 2076. Having 50 years left we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.
Mrs N López completed a first floor flat in Carlisle in June 2006. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Carlisle with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 collected annually. The lease came to a finish in 2096. Taking into account 70 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.