Carshalton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Carshalton tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Carshalton you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Carshalton with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Carshalton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her basement flat in Carshalton, Morgan started the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension completed in November 2007. The freeholder’s fees were negotiated to less than 700 GBP.
Mrs D King was assigned a lease of a studio flat in Carshalton in February 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Carshalton with an extended lease were valued about £206,200. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2082. Having 56 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
An example of a Freehold Enfranchisement case for a Carshalton premises 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.