Main reasons to commence your Carlisle lease extension
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Why you should start your Carlisle lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/carlisle">Carlisle</a> property value </h4>
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Carlisle leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Carlisle will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold properties in Carlisle with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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. <h4>Banks and Building Societies may not lend on a short lease</h4> Mortgage companies are making their criteria more stringent and a meaningful number now require flats to have at least sixty if not seventy years left once the mortgage has expired. Considering a number of flats in Carlisle were created in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.
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<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4>
Why use us for your lease extension in Carlisle? </h4>
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The conveyancers 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 conveyancing solicitor we work with provide it.
<h4>
Carlisle Lease Extension Example Cases:
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<h5> Kian, Carlisle, Cumbria,</h5>
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Kian owned a studio flat in Carlisle being sold with a lease of a little over sixty years outstanding. Kian informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
<h5>Carlisle case:</h5>
<p> Mr P Girard acquired a newly refurbished apartment in Carlisle in August 2009. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Similar properties in Carlisle with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease expiry date was in 2098. Having 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
<h5>Carlisle case:</h5>
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Last Autumn we were called by Dr E Robinson , who
owned a ground floor flat in Carlisle in July 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Carlisle with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2087. Given that there were 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of costs.
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