The closer a residential lease in Carnforth nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Carnforth will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Carnforth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you enhanced control over the value of your Carnforth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her purpose-built apartment in Carnforth, Maisie started the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was concluded in May 2005. The landlord’s charges were negotiated to under four hundred GBP.
In 2009 we were e-mailed by Dr Nathaniel Wright who, having completed a newly refurbished apartment in Carnforth in March 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative premises in Carnforth with an extended lease were worth £181,600. The average amount of ground rent was £55 billed quarterly. The lease terminated on 12 July 2077. Taking into account 52 years left we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
Last month we were called by Dr D García , who moved into a first floor flat in Carnforth in May 2005. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical premises in Carnforth with a long lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed on 16 April 2097. Having 72 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.