There is no doubt about it a leasehold property in Carnforth is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Carnforth will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Carnforth with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Carnforth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Carnforth valuers.
Following unsuccessful discussions with the freeholder of her two bedroom flat in Carnforth, Robyn initiated the lease extension process as the eighty year deadline was fast coming. The lease extension was finalised in February 2011. The landlord’s charges were negotiated to a tad over 500 GBP.
Last Winter we were contacted by Mr and Mrs. D Rose , who acquired a one bedroom flat in Carnforth in May 1995. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Carnforth with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed yearly. The lease ended in 2102. Given that there were 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
In 2011 we were contacted by Mr and Mrs. E Jones who, having bought a ground floor flat in Carnforth in October 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Carnforth with an extended lease were in the region of £257,800. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2091. Having 65 years left we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.