The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Carshalton may extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Carshalton lease extension. Putting off that expense today simply escalates the amount you will eventually have to pay to extend the lease.
Leasehold properties in Carshalton with more than one hundred years left 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 buying the freehold unless savings on ground rent and estate charges warrant 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Carshalton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Reuben, came seriously close to the eighty-year mark with the lease on his two bedroom flat in Carshalton. Having purchased his property two decades ago, the unexpired term was of no significance. Luckily, he realised he would soon be paying way over the odds for a lease extension. Reuben extended the lease at the eleventh hour last June. Reuben and the landlord ultimately agreed on an amount of £6,000 . If the lease had gone lower than eighty years, the figure would have gone up by at least £1,025.
Last Autumn we were contacted by Mrs Yasmin Martínez , who bought a ground floor apartment in Carshalton in June 2005. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative premises in Carshalton with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired on 14 February 2106. Given that there were 80 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Carshalton flat is 21 & 23 Carshalton Grove in May 2009. the Tribunal adopted the figures presented as the premiums payable by the Applicant i.e. a total of £20,750. This case related to 2 flats. The unexpired residue of the current lease was 72 years.