Unfortunately that a Carlisle residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Carlisle property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Carlisle will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire Building Society | 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. |
Lease extensions in Carlisle can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Carlisle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Aaron, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Carlisle. Having bought his flat 18 years previously, the length of the lease was of minimal bearing. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Aaron extended the lease just under the wire last September. Aaron and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If the lease had descended below 80 years, the price would have escalated by a minimum £900.
Last Christmas we were approach by Mr and Mrs. A Jackson , who moved into a one bedroom apartment in Carlisle in May 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Carlisle with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated on 17 January 2093. Considering the 68 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Last Spring we were contacted by Mr H Wilson , who owned a recently refurbished flat in Carlisle in March 2002. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar flats in Carlisle with 100 year plus lease were worth £208,600. The average ground rent payable was £60 collected every twelve months. The lease concluded on 24 September 2082. Considering the 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus fees.