Chances are that where you own a flat in Carnforth you actually own a long leasehold interest over your property
Leasehold properties in Carnforth with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Carnforth leasehold, as your property will be more valuable and saleable 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.
After lengthy correspondence with the freeholder of her studio apartment in Carnforth, Olivia initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction completed in March 2008. The landlord’s fees were kept to an absolute minimum.
Last November we were called by Mr and Mrs. E Robinson , who took over the lease of a one bedroom flat in Carnforth in July 2002. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical premises in Carnforth with a long lease were valued about £223,400. The average ground rent payable was £60 billed monthly. The lease end date was in 2084. Taking into account 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus fees.
Last Spring we were phoned by Mr and Mrs. K Davies , who bought a garden apartment in Carnforth in July 2009. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Carnforth with an extended lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2104. Having 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.