Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Carlisle. Clearly, the period of lease left shortens over time. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Carlisle have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Carlisle lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Carlisle with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Felix was the the leasehold proprietor of a studio apartment in Carlisle being sold with a lease of a few days over sixty years left. Felix on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last year we were called by Mr and Mrs. C Mason , who moved into a basement flat in Carlisle in June 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Carlisle with a long lease were worth £210,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 11 January 2106. Taking into account 80 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2009 we were called by Mrs L Roberts who, having completed a ground floor flat in Carlisle in April 1999. The question was if we could approximate the price would be to extend the lease by 90 years. Identical premises in Carlisle with a long lease were valued around £275,000. The average ground rent payable was £45 invoiced every twelve months. The lease end date was on 21 May 2095. Considering the 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.