Carmel leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Carmel enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Carmel you really ought to investigate if your lease has between 70 and ninety years left. There are good reasons why a Carmel leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Carmel with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
The conveyancers that we work with undertake Carmel 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 conveyancer we work with provide it.
Subsequent to unsuccessful discussions with the landlord of her basement apartment in Carmel, Rosie commenced the lease extension process as the 80 year deadline was quickly coming. The lease extension was concluded in July 2009. The landlord’s costs were restricted to less than 600 GBP.
Mr and Mrs. G Walker acquired a purpose-built flat in Carmel in November 2006. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Carmel with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 collected monthly. The lease termination date was on 11 April 2105. Taking into account 80 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.
Mr Theo García was assigned a lease of a first floor apartment in Carmel in January 2002. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Carmel with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated on 17 April 2094. Given that there were 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.