The market value of Carmel leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than 80 years
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Carmel,the lease extension lawyers 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 Carmel valuers.
Connor was the the leasehold owner of a 2 bedroom apartment in Carmel on the market with a lease of fraction over sixty years remaining. Connor informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were e-mailed by Ms Samantha Díaz who, having purchased a first floor flat in Carmel in March 2012. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Carmel with a long lease were in the region of £265,200. The average ground rent payable was £65 collected yearly. The lease ran out on 21 May 2092. Having 66 years left we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of costs.
Last Summer we were approach by Ms S Moore , who acquired a first floor apartment in Carmel in July 2012. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Carmel with 100 year plus lease were worth £198,800. The average ground rent payable was £55 billed every twelve months. The lease concluded on 22 May 2081. Considering the 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.