Carlisle leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher amount will be payable. Flat owners in Carlisle will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Carlisle leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Elijah, came perilously near to the 80-year mark with the lease on his purpose- built apartment in Carlisle. In buying his flat 18 years previously, the unexpired term was of minimal interest. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Elijah arranged for a lease extension just under the wire in May. Elijah and the freeholder eventually agreed on an amount of £5,500 . If the lease had dropped below 80 years, the amount would have gone up by at least £1,000.
In 2011 we were called by Mrs Laura Harris who, having moved into a studio flat in Carlisle in July 1998. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Carlisle with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 billed per annum. The lease terminated on 15 April 2102. Considering the 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Last year we were called by Dr J Gómez , who completed a garden flat in Carlisle in June 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Carlisle with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out on 27 September 2091. Having 65 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.