Carlisle leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in Carlisle will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are also strict 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 generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Carlisle,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Carlisle valuers.
Following unsuccessful correspondence with the landlord of her two bedroom flat in Carlisle, Amy commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension was concluded in July 2008. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. O Lewis , who acquired a first floor flat in Carlisle in March 2007. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical homes in Carlisle with an extended lease were in the region of £184,000. The average amount of ground rent was £55 billed quarterly. The lease lapsed in 2079. Considering the 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
Mr B Edwards was assigned a lease of a ground floor apartment in Carlisle in September 2005. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar properties in Carlisle with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed every twelve months. The lease expired on 16 March 2099. Having 73 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.