The market value of a leasehold property in Carlton depends on how long the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded in advance of the eighty year threshold. Current legislation entitles Carlton qualifying lessees to an additional term of 90 years on top of the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Carlton with over one hundred years remaining on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Carlton can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Carlton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her one bedroom apartment in Carlton, Isabella commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction completed in February 2006. The landlord’s fees were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. U Laurent who, having bought a one bedroom flat in Carlton in March 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Carlton with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed in 2089. Given that there were 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus legals.
In 2009 we were approached by Ms Ashleigh Mitchell who, having purchased a recently refurbished flat in Carlton in October 2009. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Similar premises in Carlton with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expiry date was on 23 January 2078. Given that there were 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.